Project Management

BPH VIII SEMESTER
PROJECT MANAGEMENT
PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA

BIRAT HEALTH COLLEGE
UNIT 1: INTRODUCTION TO PROJECT MANAGEMENT
1.1: Concept and definition of project, program
Project: Project is to create something new, or modify what is defined as a dwelling unit for
personal. Based on standard of project management institute, project is a temporary effort for
making a product, service or unique result.
A project is a combination of human and non-human resources pulled together in a temporary
organization to achieve a specified purpose. (Cleland and King)
Project is a temporary endeavor undertaken to create a unique product, service, or result.
“Project” as the whole complex of activities involved in using resources to gain benefits.
(Gillinger)
A project is any series of activities and tasks that:
 Have specific objectives to be completed within certain specifications.

 Have defined start and end dates.
 Have funding limits.
 Consume resources (According to Harold Kerzner)
Characteristics of Project
 Unique purpose
 Temporary
 Requires resources
 Developed using progressive elaboration
 Involves uncertainty
 Others
Objective: A Project must have its objective or a set of objective.

Beneficiaries: Each project has some beneficiaries. Beneficiaries are the one to whom the project
is targeted.
Constraints: A project must have defined Scope, Schedule and Budget.
Single Entity: A project as a whole is a single entity.
Life Span (cycle): A Project must have its fixed life span and which includes conception,
definition, planning and organizing, implementation and termination phase.
Teamwork: A Project is based on the concept of teamwork. Without teamwork, its objectives
cannot be achieved.
Flexibility: A Project must be flexible so that it operates in a dynamic environment.
Resource Integration: A Project is based on resource integration. It integrates man, money and
material resources to achieve its objectives.
PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 1

Planning and Control: A Project must be planned and controlled well, its objectives within the
limited time.
Contracting and Sub-contracting: Project includes contracting and sub-contracting of activities
and tasks.
Programme:
 A program is a portfolio comprised of multiple projects that are managed and coordinated
as one unit with the objective of achieving (often intangible) outcomes and benefits for
the organization.
 Programs can be regarded as subsystems. However, programs are generally defined as
time-phased efforts, whereas systems exist on a continuous basis.
 Program is the integrated, time-phased tasks necessary to accomplish a particular
purpose. Projects are normally the first-level subdivision of a program and that programs
are more ongoing than projects. - Air Force Definition
1.2: Project management, benefit and limitation of project management
Project management:
 Project management is the application of knowledge, skills, tools and techniques to

project activities in order to meet or exceed stakeholders' needs and expectations from a
project.
 Project Management is the art of managing all the aspects of a project from inception to
closure using a scientific and structured methodology. The term project may be used to
define any endeavor that is temporary in nature and with a beginning or an end.
 “Project Management is the planning, organizing, directing and controlling of company
resources to complete specific goals and objectives” (Harold Bergner).
 Project Management is the planning, implementation and controlling of complex and
unique activities to achieve results within constraints with customer satisfaction.
 Project Management determines in advance who, what, when, where and how before the
project begins – this is defining and planning.
 Project Management assembles project team for the project structure and allocates
resources for various activities – organizing.
 Project management tracks and monitors progress to get feedback to assess the objective
controlling.
 Project management involves five process groups namely:
o
Project initiation
o
Project planning
o
Project execution
o Project monitoring and control
o Project closure
 Successful project management can be defined as having achieved the project objectives:
Within time, cost, at the desired performance/technology level, utilizing the assigned
resources effectively and efficiently

Characteristics of the Project Management:
 Objectives-oriented
 Change-oriented
 Single responsibility Centre
 Team based
 Functional coordination
 Planning and control
 Constraints (Time, Scope, Quality)
Benefits of Project management:

Identification of functional responsibilities to ensure that all activities are accounted for,
regardless of personnel turnover.

Minimizing the need for continuous reporting

Identification of time limits for scheduling

Measurement of accomplishment against plans.

Early identification of problems so that corrective action may follow

Improved estimating capability for future planning

Knowing when objectives cannot be met or will be exceeded
Limitation of Project Management:
 Lack of long range planning

 Organizational disruption
 Constrained HRD
 Reluctance for authority delegation
 Organizational restructuring
 Team related problem
 Conflicts
 Unsuitable (for small organization)
1.3: Project constraints


Project complexity

Customer’s special requirements and scope changes

Organizational restructuring

Project risks

Changes in technology

Forward (advanced) planning and pricing.
1.4: Understanding the nature of Projects
 Objectives: A project has a set of objectives. Once the objectives are achieved the project
is treated as completed.
 Life cycle: A project has a life cycle. The life cycle consists of four stages.
 Uniqueness: Every project is unique and no two projects are similar. Setting up a cement
plant and construction of a highway are two different projects having unique features.
 Team Work: Project is teamwork 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 teamwork.
 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. A risk-free, it
only means that the element is not apparently visible on the surface and it will be hidden
underneath.
 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.
 Change: Changes occur throughout the life span of a project. The changes may very from
minor changes to major changes which may have very little to a big impact on the project.
 Optimality: A project is always aimed at optimum utilization of resources for the overall
development of the economy.
 Sub-contracting: A high level of work in a project is done through contractors. The more
the complexity of the project, the more will be the extent of contracting.
 Unity in diversity: A project is a complex set of thousands of varieties. The varieties are
in terms of technology, equipment and materials, machinery and people, work, culture
and others
1.5: Project identification
 Identification of a new project is a complex problem.

 Project selection process starts with the generation of project ideas.
 In order to select the most promising project, the entrepreneur needs to generate a few
ideas about the possible project one can undertake.
 The project ideas as a process of identification of a project begins with an analytical
survey.
 The surveys and studies will give us ideas.
1.6: The project life cycle

A project goes through various stages: from the first idea to greater and greater clarification of
setting, problems, objectives, choices and action.
It is then implemented, revised during implementation and eventually evaluated. These
progressive stages in the lifespan of a project are sometimes referred to as a ‘project cycle’.
Formulation Phase: as a system that manages information, very complex in some cases, with a
systematic approach of interrelated phases, and applying different planning instruments that
allow to execute the project design's concrete tasks.
Planning Phase (Developmental Phase): This is the second phase in the project life cycle. It
involves creating of a set of plans to help guide the team through the execution and closure phases
of the project. The plans created during this phase will help to manage time, cost, quality, change,
risk and issues.
Implementation Phase (Execution): This is the phase where visions and plans become reality.
This is the logical conclusion, after evaluating, deciding, visioning, planning, applying for funds
and finding the financial resources of a project.
Termination Phase (Close Out): This is the last stage of managing the project, and occurs after
the implementation phase has ended.
Interrelationship between Plan, Programme and Project:
Plan
 Planning: Planning is a continuous process to prepare or formulate a development plans

for instance, planning for community development, district development and so on.

 Planning process prepare a comprehensive document to give the final shape of a plan.
 While formulating development plan, the planners need to have a clear understanding
about the vision, mission, goal, objectives and strategic approaches combined with the
estimation of required resources in order to carry out the proposed plan.
 It also implies a meaning “to produce a representation of desirable situation stating a
proposal to implement the formulated plan or to direct the actual situation towards the
plan”.
Programme
 A Programme is an extensive and consistent set of action units stating the needs of
interrelated activities to achieve the plan’s objective and goal.
 In other words, a Programme is a group of complementary activities of which common
purpose is directed to make a plan successful.
 There could be several Programmes within a plan or within a development plan.
Project
 Projects are the time-bound specific action units or schemes designated for the
investment of resources with an aim of achieving its established objective/s.
 Resources could be in terms of money, materials, human, time, technology, information
etc.
 There could be a number of projects functioning either independently or jointly within a
Programme.
 Projects always remain at the bottom level of a plan.
 Thus, projects are the building blocks of a Programme and programs are the integrated
blocks of a development plan.

UNIT 2: PROJECT FORMULATION
A process is a collection of interrelated actions and activities that take place in order to achieve a
set of previously specified products, results or services.
2.1: The project initiation stage

First step of project formulation.

At this step, projects must be defined and approved.

During this phase, background information, market research, and other pertinent data
should be reviewed.

The project manager should be selected - based on his or her experience and skills - will
select the required team members.

Project goals should be determined and aligned with those of the organization.

If goals do not align, the project will likely not be approved.

Create a concise but powerful overview of the project’s expected outcomes, costs, and
benefits.

This should include both a description and a justification for the project.
2.2: Literature review
 A literature review provides the context for your project, by examining and
acknowledging the work of others, and allowing you to establish your position.
 It shows Sponsor that you are familiar with significant project in your area and justifies
the importance of your project.
 literature review should address:
o What project has already been undertaken in this field/on this sector?
o What were the results and conclusions of this project?
o How do the findings from other project inform the investigation or study of my
project?
o What gaps exist in the literature that will justify my project and ensure the project
hasn't been done before?
2.3: Identifying what has triggered your project
 The need arises from a problem or situation (internal or external) that either threatens
the organization or presents it with a valued opportunity.
 The need may be for a new product or service, for a new process or system, even for
developing new markets; or it may be for cutting back and retrenching a division.
 A critical need prompts general management to initiate a project management team.
 Benefit/opportunity to the organization for undertaking the project.
 The statement should be short, crisp, and to the point.
 It should serve as a descriptor for those who although not directly involved on the project
may be indirectly involved in supporting the project.
2.4: Determining project goals
 The ultimate result of the program or project is contributing- the impact of the program
or project. Examples, Millennium Development Goals (MDGs), such as (a) improve
maternal health; (b) reduce child mortality; etc.

 Every project has only one major goal to be accomplished and several objectives that
support the goal.
 It defines the final outcome in terms of the end product or services.
 It is the continual point of reference for settling disputes and misunderstandings about
the project.
 The goal statement should be action-oriented, short, simple, straightforward, and

as understandable as possible.
 This may be a very short but specific statement such as: “Plan and conduct the annual
meeting."
 The important thing to remember is that the goal statement must be phrases using
terms that would not mislead anyone.
 It must also use terms that measure its completion. For example, "Write the annual
report" is an activity whose completion cannot be measured. On the other hand,
"Receive approval of the annual report” is an activity whose completion is known
once the approving signature is on the document.
 The project goal statement is important for two reasons:
o It is a clear statement of what is to be done.

o
It is an event whose completion can be measured.
 Also remember that the project goal directs the course of the entire effort.
 The goal will be the standard for resolving conflicts, for clarifying expectations, for
requesting and justifying resources.
 The goal is the most important statement for initiating the project.
 The goal statement is specific, measurable, time-related, and provides direction.
 The goal can realistically be accomplished.
 The goal is manageable.
2.5: TOR, RFP

Term of Reference (TOR)
 TOR defines the purpose and structures of a project, to accomplish a shared Goal.
 Often referred as the project charter.
 Creating detailed TOR is critical, as they define the:
o Vision, objectives, scope (i.e. what has to be achieved),
o Stakeholders roles and responsibilities (who will take part in it)
o Resource, financial and quality plans (how it will be achieved)
o Work breakdown structure and schedule ( when it will be done)

 The “TOR" is created during the earlier stages of Project Management, immediately after
the approval of a project.
 They are documented by the Project Manager and presented to project sponsor or
sponsors for approval.
 Once the TOR has been approved, the members of the project team have a clear definition
of the scope of the project.
 This phrase is often used when describing the task that has been assigned to a
consultant or advisor.
 Terms of reference should also provide a documented basis for making future decisions
and developing a common understanding of the scope among stakeholders.
Request for proposal (RFP)
 A request for proposal (RFP) is a document that solicits proposal, often made through a
bidding process, by an agency or company interested in procurement of a commodity,
service or valuable asset, to potential suppliers to submit business proposals.
 RFP is a type of bidding process in which an organization announces that funding is

available for a particular project or program, and organization can place bids for the
project's completion.
 It summarizes the bidding process, contract terms, and provides guidance on how the bid
should be formatted and presented.
 The complexity of a project may result for a formal request for proposal.
 Government agencies or other entities may be required to issue RFPs.
 For e.g., a project moving from a paper-based system to a computer-based system may
request proposals for the hardware, software and user training needed for establishing
and integrating the new system into the project.
 Requests for proposals may include a statement of work describing tasks to be performed
by the winning bidder and a timeline for providing finished work.
 Another e.g., the MOH issues a request for proposals for financing, designing, constructing,
and maintaining Birthing center building.
 Interested parties submit proposals meeting the requirements outlined in the document.
 Based on the proposals received by the deadline, the MOH establishes commissions for
further review and development of the proposals.
Structure of an RFP: Key sections of an RFP
 Why? Reasons why your organization need to buy a new solution.

 Who? Description of your organization.
 What? Nature of your project.

 How? Contract. Information needed from suppliers. Proposal evaluation criteria. Contract
award criteria.
 When? Selection process timeframe and deadlines. Persons to contact.
Statement of Purpose: Describe the extent of products and services your organization is looking
for, as well as, the overall objectives of the contract.
Background Information: Present a brief overview of your organization and its operations,
using statistics, customer demographics, and psychographics. State your strengths and
weaknesses honestly. Don’t forget to include comprehensive information on the people who will
handle future correspondence.
Scope of Work: Enumerate the specific duties to be performed by the provider and the expected
outcomes. Include a detailed listing of responsibilities, particularly when sub- contractors are
involved.
Outcome and Performance Standards: Specify the outcome targets, minimal performance
standards expected from the contractor, and methods for monitoring performance and process
for implementing corrective actions.
Deliverables: Provide a list of all products, reports, and plans that will be delivered to your
organization and propose a delivery schedule.
Term of Contract: Specify length, start date and end date of the contract, and the options for
renewal.
Payments, Incentives, and Penalties: List all the terms of payment for adequate performance.
Highlight the basis for incentives for superior performance and penalties for inadequate
performance or lack of compliance.
Contractual Terms and Conditions: Attach standard contracting forms, certifications, and
assurances. You may include requirements specific to this particular contract.
Requirements for Proposal Preparation: A consistent structure in terms of content,
information, and documents types simplifies things for the people evaluating the proposals.
Therefore, you should request a particular structure for the proposal and provide an exhaustive
list of documents you want to receive.
Evaluation and Award Process: Lay down the procedures and criteria used for evaluating
proposals and for making the final contract award.
Process Schedule: Clearly and concisely present the timeline for the steps leading to the final
decision, such as the dates for submitting the letter of intent, sending questions, attending the
pre-proposal conference, submitting the proposal, etc.
Points of contact for future correspondence: Include a complete list of people to contact for
information on the RFP, or with any other questions. Incorporate their name, title,
responsibilities, and the various ways of contacting them into this list.

UNIT 3: PROJECT PLANNING AND DEVELOPMENT
Project planning: Project planning is part of project management, which relates to the use of
schedules such as Gantt charts to plan and subsequently report progress within the project
environment. Initially, the project scope is defined and the appropriate methods for completing
the project are determined.
Project Planning: The process of developing a project from determining the needs and
problems to creating activities and writing a budget. Project planning involves a series of steps
that determine how to achieve a particular community or organizational goal or set of related
goals.
Project development: The project development process is initiated in response to an identified
need in the transportation system. It covers a range of activities extending from identification of
a project need to a finished set of contract plans, and to construction
3.1: Project Planning and Development Process
3.1.1: Understand project objectives

 In order to accomplish the stated goal, several major project steps will have to take place.
 Among them, objectives represent major components of the project (some would
use the term milestones (landmarks), which is perfectly acceptable).
 Objectives are not actual work that is accomplished but sub goals which direct work
activity.
 Objectives are more precise statements than the goal statement and are also action-
oriented.
 George Doran (1981) has offered a meaningful and easy to remember method for
helping us formulate objective statements.
3.1.2: Identify key project stages

1. Defining stage
2. Planning stage
3. Organizing stage
4. Controlling stage
5. Closing stage
1. Defining Stage
 State the problem(stating the problem or situation, need, benefit or the opportunity
clearly)
 Identify project goals
 List the objectives
 Determine preliminary resources(Human and non-human)
 Identify assumptions and risks
2. Planning Stage
 Identify project activities
 Estimate time and cost
 Sequence project activities
 Identify critical activities

 Write project proposal
Identify project activities
 Each objective will have a number of discrete activities.

 These activities define the work that must be done in order to accomplish the objectives.
 Activities must be formulated and specified so that they can be easily measured and
their completion easily verified.
 Activities are identified by considering each objective and asking, "What activities
must be done in order to complete the project? “
 Like objectives, activities must also be S.M.A.R.T.
Estimate Activity Time
 The time to complete an activity is random.

 If a given activity were done over and over again one would expect the completion times
to vary somewhat.
 For others they will be relatively stable. Reasons for these variations include:
o Skill levels of the people doing the activity,
o Machine variations,
o Material availability, and
o Unexpected events (sickness, natural disasters, worker strikes,
industrial accidents, employee turnover, etc.
o We know unexpected events will happen, but we cannot predict their
occurrence on a specific project or activity with any accuracy.
o There are 3 estimates of activity completion time.
a) Optimistic completion time of an activity is the time that will be required if
everything goes perfectly. That is, everything happens exactly and there are no
unexpected events that delay activity completion.
b) Pessimistic completion time of an activity is the time required if everything that can
go wrong but the activity is still completed.
c) Most likely completion time of an activity is the time required under more
normal situations.
o This may also be an estimate of the completion time that has occurred most
frequently from prior experience with similar activities.
o In many cases all three of these times may be estimated from prior
experiences with similar activities.
Estimating Activity Cost
 There are typically four major cost categories that may be defined for any activity:
• Labor Cost
• Materials Cost
• Other direct (travel, telephone, contracted services, etc.)
• Indirect cost
• In some cases indirect cost may be a fixed percentage of total direct costs attributable
at the project level rather than at the activity level.
• As a general practice the unallocatable costs, such as administrative overhead,
utilities, building depreciation, etc., are computed as a fixed percentage of total
direct costs.

Sequence project activities
 Using the activities as they are represented in the WBS we can construct the sequence in
which the project activities will be done.
 Because each activity has an associated cost and an estimated completion time.
 We can build an estimate of the total project cost and completion time.
 Simply recognizing that some activities may be done simultaneously (at once) and that
others must be done sequentially (in order) is enough to grasp the complication in
scheduling activities and estimating project completion time.
Identify Critical Activities
 Project activities are critical to the project being completed on schedule.

 The time to complete the project is the longest time path through the network.
 The sequence of activities that makes up the longest path is known as the critical path.
 As long as activities on the critical path are going well, the project will remain on schedule.
If, however, any of these activities takes longer than originally estimated, the project
completion time will be extended.
 Of course, the manager will try to obtain additional resources for critical path activities to
restore the project to its original completion date.
 The most important use of the network is to determine the time required to complete.
Write Project proposal
 The project proposal represents the transition from planning (define, plan) to
implementation (organize, control, close).
 It is the foundation on which all management decisions will be made.
 A complete description of the project activities, timeline, and resource requirements.
 Needed by management to decide whether the project should proceed to the
implementation phase.
 A dynamic tool for the project manager and project team to use for decision making
throughout the project life cycle.
Elements of Project Proposal
 Project Name
 Project Manager
 Activity
 Schedule
 Project Budget
3. Organizing Stage
 Determine personnel needs (selection of project manager and team members)

 Recruit project manager
 Organize project (Resource to achieve objectives)
 Assign work packages
 Determine Personnel Needs
 It includes selection of project manager and team members.
 The project manager is one of the most important personnel in the project.
 This person plays a major role in planning and executing a project.

 The project manager also symbolizes the image and reality of the project to the
organization and to external groups.
Selection Criteria of project Manager
 The major goal of selecting a project manager is:

 To assign someone who is experienced, capable, and competent in getting the end
product or service planned and implemented on time, within budget, according to
specifications.
 Major characteristics of an effective project manager can be summarized under five
categories
1) Background and experience
2) Leadership and strategic
3) Technical expertise
4) Interpersonal competence/people skills.
5) Proven managerial ability
Characteristics of a project manager
Being a project manager is a specific kind of leadership position, which requires certain character
traits and qualities. An effective project leader is often described as having a vision of where to
go and the ability to articulate.
 Inspires a Shared Vision

 Good Communicator
 Integrity
 Enthusiasm
 Empathy
 Competence
 Ability to Delegate Tasks
 Cool Under Pressure
Selection Criteria of Team Members
 Technical Expertise
 Interpersonal Competence/People Skills
 Background and Experience
 Proven Managerial Ability
 Leadership and Strategic Expertise
Recruit Project Manager
Recruit Project Manager having balanced set of general characteristics for successive completion
of the project in effective and efficient manner.
Organize Project
Organize all human and non- human resources to achieve organizational goal effectively and
efficiently within time and budget constraints
Man Technology
Money Information
Material Time

Assign work package
 The work package consists of tasks each of which is continuous activities that can be
assigned to a single individual.
 The scheduled start and end date for every task in the work package has been specified.
 Managing work packages is aided through the use of simple forms that define exactly what
is to be done, by when, and by whom.
 The same form can be used to monitor the status of work packages.
 The work package managers clearly understand what is expected and by when.
 The resources necessary for each work package have been committed and are available
according to the project schedule.
 The task descriptions have been reviewed and approved by the work package manager
and the project manager for completeness.
 The persons responsible for the tasks that comprise the work package have reviewed and
understand their task, the expected deliverables, and the timeline.
4. Controlling Stage
 Define management style
 Establish control tools
 Project schedule
 Change Orders
Define management style
 Autocratic: The manager makes decisions alone.

 Supportive: The manager makes decisions, then attempts to influence followers by
selling his / her idea, gathering support for his / her idea, and stirring enthusiasm among
subordinates.
 Consultive: The manager confers (discuss) with subordinates to gather information, then
makes the decision himself / herself.
 Democratic: The manager solicits not only information from subordinates but also
request their involvement in the generation of alternatives and selection of decision.
Establish control tools
Controls tools are designed to focus on major components of a Project:-
1. Performance levels, 2. Costs, and 3. Time schedules.
Three reasons for using control tools are:-
 To track progress— through periodic reporting system (monthly)

 To detect variance from plan----- through variance, graphical report)
 To take corrective action (according to reports)
The three common control tools are
 Variance reporting tools,

 Exception reporting tools, and
 Gantt Charts
Variance reporting tools

Variance is a measurable change from a known standard or baseline. In other words, variance is
the difference between what is expected and what is actually accomplished. In
project management, variance baseline is established by identifying the cost, schedule and scope.
 It is the simplest reporting tools.

 It provides a snapshot in time of the status of the project or any of its activities.
 By comparing the planned schedule of activities with what actually happened, the project
manager will be aware of variances from plan and help to take appropriate corrective
measures.
Project Variance Report
 The project manager has delegated the appropriate responsibility and authority to the
work package managers to complete their work on time, within budget, and according to
specifications.
 The reporting and control system is compatible (well suited) with that of the organization.
 The reporting system will alert the project team about out-of-control situations early
enough to take positive corrective action.
Graphical Reporting Tools
 A simple graphical way to convey the variance from plan information with cumulative cost
or time.
 Managers' time is valuable. To force them to read page after page of data is to waste their
time.
 A report that identifies actual performance and clearly display the variance.
 For example, the project manager may want to be alerted to any variance that is more
than 10 percent above or below plan.
Exception Report
 It is a very important piece of document that is essential to the proper and effective
functioning of a project.
 It actually itemizes and documents the major mistakes, or mishaps (unfortunate events).
 Essentially the things that went wrong.
 It provides a carefully written documentation of the mistakes for look back at a later point
within the life of a project hoping of avoiding making the same mistakes again; however,
it is also important for future projects.
Gantt Charts
 A Gantt chart is one of the most convenient, most used, and easy-to-grasp depiction
(picture) of project activities
 It is a two-dimensional graphical representation of the activities that include in the
project.
 The vertical dimension lists the project activities-one per line-while the horizontal
dimension is time.
 Once the scheduled start and completion date of each activity has been determined, the
Gantt chart can be constructed.
 The value of a Gantt Chart is the scaling of project activities according to their duration

Project schedule
 A project schedule designates work to be done and specifies deadlines for completing
tasks and deliverables.
 The project schedule depicts:
 Time (duration) estimates for all project tasks
 Start and finish dates for the tasks
 Names of staffs assigned to complete the tasks
 Sequence of tasks
 A major component of a project schedule is WBS (work breakdown structure).
 The project schedule is constructed to reflect the WBS
Rationale/Purpose
 The project manager uses the schedule to help plan, execute and control project tasks and
to track and monitor the progress of the project.
 The project schedule defines timelines for key deliverables and sets expectations for
project progress and completion.
 Who is involved? Project Manager Project Team
Change Orders
 A change order is a document that contractually alters an original agreement between the
signed parties.
 Relative to construction, a change order is the result of an owner approved revision to
terms and conditions that are defined in a contract for a project.
 Change order is directed by the owner or request by the contractor.
 Depending on its specific requirement, a change may or may not impact a project’s
contractual cost and schedule.
 If cost is affected, a change may be increased or credited.
 Similarly, the duration of activities in a project schedule is identified with change may be
extended or reduced.
 Contracts include different conflicting clauses regarding changed work. Eg. The
contractor cannot proceed the work for a change in the absence of a written and approved
change order/the owner has the right to order the contractor to perform extra work
without an agreement for compensation.
 The resolution of chance orders can also become source of disputed issues between
owner and contractor.
 The disputed issues become further intensified if the chance order process is
inadequately managed
5. Closing Stage
 Obtain clients acceptance

 Install deliverables
 Document the project
 Issue the final report
 Conduct post implementation audit

Obtain clients acceptance
 The client decides when the project is done.

 It is project manager’s job to demonstrate that the deliverables (whether products or
services) meet client specifications.
 For small projects, this acceptance can be very informal and ceremonial.
Ceremonial Acceptance
 Ceremonial acceptance is an informal acceptance by the client. It simply happens.The

following two situations fall under the heading of ceremonial acceptance:-
o The first involves deadline dates at which the client must accept the project as
complete, whether or not it meets the specifications. For e.g.- if the project is to
plan and conduct a conference, the conference will happen whether or not the
project work has been satisfactorily completed.
o The second involves a project deliverable requiring little or no checking to
determine whether specifications have been met. For e.g. planning and taking a
vacation. The project involved recommending or not recommending.
 There really was no client to satisfy — just a decision to be made.
Install deliverables
 Project deliverables are the products or services that are given to your clients/customers.
 Deliverables usually have a due date and is tangible (real), measurable and specific.
 A deliverable can be given to either an external or internal customer and satisfies a
milestone or due date.
 Without deliverables, projects would be pointless; deliverables are why projects are
created.
 Project deliverables are not objectives themselves, but deliverables and objectives are
very closely related.
 Objectives are statements of what you plan to accomplish.
 Deliverables help to achieve project objectives. For e.g. if your objective is to understand
your customers, you need a customer profile (deliverable).
Examples of Project deliverables
 WBS , Variance Reports, Project Network, Critical Path, Work Package Description,
Recruitment Criteria, Work Package Assignments Project Proposal, Staff Allocation
Reports Status Reports, Audit Report, Final Report
 Ensure that all deliverables have been installed or implemented according to time,
budget, and specifications
Document the project
 Document completion and compliance with all contractors, consultants, and services
purchased and received.
 Prepare a document file of all vendors and contracted services and products terminated.
 Ensure that adequate project documentation and baseline information are in place to
facilitate changes that may need for future.

Issue the final report
There are many formats that can be used for a final report. The elements are usually included are
as follows
 Overall success and performance of the project (using the post-implementation audit
results)
 Organization and administration of the project
 Techniques used to accomplish project results
 Assessment of project strengths and weaknesses
 Recommendations from the project manager and team for continuation or extinction of
the project
Conduct post implementation audit
The post-implementation audit is an evaluation of the project's goals and activity achievement as
measured against the project plan, budget, time deadlines, and quality of deliverables,
specifications, and client satisfaction.
The log of the project activities serves as baseline data for this audit. The driving questions
include-
1. Was the project goal achieved?

2. Was project work done on time, was it done within budget, and was it done by specifications?
and Was the client satisfied with the project results?
3. A post-implementation audit is done and can be added to the final report.
3.1.3: Prepare work break down structure (WBS)
 WBS is a hierarchical representation of the project.

 It shows the activities that must be done to begin and complete the project.
 Goal and objectives that must be expressed in terms of activities and work to be done.
 WBS will reduce even the most complex projects to activities and tasks that can be
planned and executed with confidence.
 It is the document that guides the remainder of the project.
 WBS facilitates the planning, budgeting, scheduling, and control activities for the project
manager and team.
Characteristics of WBS
 Its status and completion is easily measured.

 It has a very definite beginning and ending event.
 It is familiar (may have been done before) and its associated costs can easily be estimated
from prior experiences with similar activities.
 It comprises work assignments that are manageable, measurable and independent.
 It should normally represent one continuous stream of work from start to finish
Additional Activities for WBS
 Scheduling material delivery,

 Subcontractor activities that impact project activities,
 Equipment availability, and staff training and availability.

 If these can affect project activities and completion time, include them as activities in the
WBS.
Steps for Constructing WBS

Step 1: Divide the project into its major objectives such that the project is fully defined by the
objectives.
Step 2: Partition each objective into the activities that must be done in order to accomplish the
objective.
Step 3: For each activity having one or more missing characteristics, divide that activity into the
sub activities.
Step 4: Repeat step 3 until all sub activities have the characteristics desired.
Step 5: The lowest-level sub activities in the hierarchy will be the basis of the work packages that
must be done in order to complete the project.
3.1.4: Determine logical sequence of activities
 Using the WBS, we can construct the sequence of project activities.

 Each activity has an associated cost and an estimated completion time.
 We can build an estimate of the total project cost and completion time.
 Simply recognizing that some activities may be done simultaneously (at once) and that
others must be done sequentially (in order) is enough to grasp the complication in
scheduling activities and estimating project completion time.
3.1.5: Estimate time and resource requirements
 Time estimates for all project tasks according to WBS.

 Include Start and finish dates for every task.
 People (how many, who, when, and for how long),
 Equipment (what pieces, when, and for how long),
 Office space (for project manager, and others)
 Money(How much, when, for what purpose)
Things to be consider:
 What are the probable time, money, and personnel cost to complete this project?
 The project manager determined the needed resources based on the project plan.
3.1.6: Allocate responsibilities for each activity
 Each activity of project will be single-purposed, of a specific time duration, and

manageable.
 Delegate responsibility for completion of every activity clearly that comprise the project.
 Each activity is assigned to one individual who has the authority and access to the
resources needed to complete the assignment.
 Each activity will be clearly defined
 Every activity will have definite beginning and ending so that its completion will be
easily measured and clearly observed.

3.1.7: Finalize project plan
 The project proposal represents the transition from planning (define, plan) to
implementation (organize, control, close).
 It is the foundation on which all management decisions will be made.
 A complete description of the project activities, timeline, and resource requirements.
 A dynamic tool for the project manager and project team to use for decision making
throughout the project life cycle
3.2: Models of Project Planning

3.2.1: Concept and definition of project planning, importance of project planning
 Project planning is part of project management, which is related to the use of schedules,
to plan and subsequently report progress within the project environment.
 Project planning is often used to organize different areas of a project, including project
plans, workloads and the management of teams and individuals.
 The inputs of the project-planning phase include the project charter and the concept
proposal.
 The outputs of the project-planning phase include the project requirements, the project
schedule, and the project management plan.
 Project Planning can be done manually.
 Project planning begins by setting the scope of a project and eventually working through
each level of dependent actions, tasks, checkpoints and deadlines.
Definition of project planning
 Project planning is the process of thinking through and making explicit the project’s
objective, goal and strategies necessary to bring the project through its life cycle to the
successful termination. David I. Cleland
 Project planning is a discipline for stating how to complete a project within a certain
timeframe, usually with defined stages, and with designated resources.
 A Project Plan sets out the phases, activities and tasks needed to deliver a project.
 The timeframes required to deliver the project, along with the resources and milestones
are also shown in the Project Plan.
Importance of project planning
 Control the risks and uncertainty in project environment.

 Allocate resources in a coordinate manner.
 Establish standards of performance for project monitoring.
 Establish procedures to make corrections in project work.
 Achieve project results on the time, to the budgeted cost & the desire level of quality
performance.
 Improve efficiency of project operations by minimizing waste.
 Help in increment of size and complexity of the project.
3.2.2: Approach of project planning
3.2.2.1: Conventional Methods
 It is also known as the traditional method project planning.

 The traditional project management as 'a set of techniques and tools that can be applied
to an activity that seeks an end product, outcomes or a service'.
 It simply assesses the various tasks required for a project, and provides a process to
oversee and monitor the completion of those tasks.
 The traditional approach assumes that the project scope and goals will remain constant
till project completion.
Stages of conventional/Traditional approach
1. Initiation stage:
 The initiation phase is the beginning of the project

 The initiation processes determine the nature and scope of the project.
 The goal of this phase is to examine the feasibility and project goals of the project.
 Decisions are made concerning who is to carry out the project, which party (or parties)
will be involved and whether the project has an adequate base of support among those
who are involved.
 It also helps to determine resources (Human and non-human).
2. Project planning or design stage:
 After the initiation stage, the project is planned to an appropriate level of detail.
 The main purpose is to plan time, cost and resources adequately to estimate the work
needed and to effectively manage risk during project execution.
 A failure to adequately plan greatly reduces the project's chances of successfully
accomplishing its goals.
 It also help to identify the roles and responsibilities
Project planning generally consists of;
1. Determining how to plan
2. Developing the scope statement;
3. Selecting the planning team
4. Identifying deliverables and creating the work breakdown structure
5. Estimating the resource requirements for the activities
6. Estimating time and cost for activities
7. Developing the schedule
8. Developing the budget
9. Risk planning
10. Gaining formal approval to begin work
3. Project execution or production stage:
 Executing consists of the processes used to complete the work defined in the project
management plan to accomplish the project's requirements.
 Execution process involves coordinating people and resources, as well as integrating and
performing the activities of the project in accordance with the project management plan.
 The deliverables are produced as outputs from the processes performed as defined in the
project management plan.

4. Project monitoring and controlling systems:
 Monitoring and Controlling consists of those processes performed to observe project

execution so that potential problems can be identified in a timely manner and corrective
action can be taken, when necessary, to control the execution of the project.
 The key benefit is that project performance is observed and measured regularly to
identify variances from the project management plan.
Monitoring and Controlling includes:
 Measuring the ongoing project activities (where we are)

 Monitoring the project variables (cost, effort, scope, etc.) against the project management
plan and the project performance baseline (where we should be).
 Identify corrective actions to address issues and risks properly (How can we get on track
again).
5. Project completion stage:
 Closing includes the formal acceptance of the project and the ending thereof.
 Administrative activities include the archiving of the files and documenting lessons
learned.
 This phase consists of:
o Project closing
o Contract closing
Project close
 Finalize all activities across all of the process groups to formally close the project or a
project phase.
Contract closure
 Complete and settle each contract (including the resolution of any open items) and close
each contract applicable to the project or project phase
3.2.2: Logical frame work approach in project planning- Concept, definition and major
steps in LFA
Meaning of log frame, element of log frame and development of log frame matrix
 A log frame is a tool for improving the planning, implementation, management,

monitoring and evaluation of projects. The log frame is a way of structuring the main
elements in a project and highlighting the logical linkages between them.
Logical framework approach in project planning
 The first logical framework developed for USAID at the end of 1960’s.
 LFA is a methodology mainly used for designing, monitoring & evaluating international
development projects.
 LFA is a systematic planning procedure for complete project cycle management.
 It is a problem solving approach, which takes into account the views of all stakeholders.
 It also agrees on the criteria for project success and lists the major assumptions

 LFA is a management tool for effective planning and implementation of developmental
projects.
 It provides clear, concise and systematic information about a project through a
framework.
 We know about various components of a project such as goal, objectives, activities, results
and indicators.
 The LFA helps in connecting all these components in one framework, presenting the tight
relationship between them, leading to the achievement of the expected outcomes
There are four major steps in LFA
1. Situation Analysis
2. Strategy Analysis
3. Project Planning Matrix
4. Implementation
1. Situation Analysis
 A situation analysis has as its core task to find out the actual state of affairs with respect
to an issue to be analyzed; it is focused by problems and an attempt to understand the
system which determines the existence of the problems.
 The situation analysis phase is the most critical, yet most difficult, phase of the log frame
approach.
 The situation analysis phase consists of three stages
Stakeholder analysis is a tool for clearly defining key stakeholders for a project or other activity,
understanding where stakeholders stand, and developing cooperation between the
stakeholders and the project team. Key questions to ask in preparation for developing the log
frame are:
 Who will be involved in the log frame development?

 Where will the development be conducted?
 Who will facilitate the development of the log frame?
 What background materials, papers and expertise may be needed?
 What materials and logistics are required?
Problem analysis helps primary stakeholders to identify the causes and effects of the problems
they face. It involves drawing a problem tree, from which project objectives can be identified. The
tree can be developed as follows:
 Commence by identifying the main problems that need to addressed

 The main problems should be written on card, and stuck on the wall.
 High order problems should not be described as 'lack of' something, for example lack of
knowledge, but instead they should be described as an effect, for example lack of
knowledge may become 'destructive forest harvesting practices'
 After all of the problems are displayed on the wall they should then be clustered into
groups of similar issues
 At this stage, a simple 'weeding' exercise can be undertaken.
 The aim of the weeding exercise is to remove any problems that are clearly not problems
that can be addressed by the project.

Developing the Problem Tree
 The problem tree is developed by moving problems from the clusters of problems on the
wall and by adding new problems that emerge as the tree is developed.
 Problems can be moved up or down the tree as required.
 The tree should end up with one of the main problems and a series of lower order
problems that branch out below the main problem.
 The problem tree is constructed by selecting a problem from the list and relating this
problem to a starter problem using the cause-effect rationale described below:
 If the problem is a cause of the starter problem it is placed below the starter problem If
the problem is an effect of the starter problem it goes above If it is neither a cause or effect
it goes at the same level.
Objectives Analysis: Objectives are lower level statements that describe the specific, tangible
products and deliverables that the project will deliver.
 An objectives’-analysis in a wide sense is a procedure for systematically identifying,

categorizing, specifying and - if required - balancing out objectives of all parties involved
in a specific situation.
 The objectives-analysis and the problems-analysis influence each other: the more
information one has about the problem situation, the more specifically one can formulate
objectives; the kind and outline of the objectives analyzed influence the perception of
problems.
 The problem tree is transformed into an objectives tree by restating the problems as
objectives. Objective Analysis Tree is a project planning tool that helps to analyze and
graphically break down objectives into smaller and more manageable parts. The
Objective Analysis Tree is a tool derived from its parent tool the Problem Analysis
Tree.
 The objectives tree can be viewed as the positive mirror image of the problem tree.
 It is usually necessary to reorder the position of objectives as you develop the tree.
 The objectives tree can be considered as an 'ends - means' diagram.
 The top of the tree is the end that is desired and the lower levels are the means to
achieving the end.
 Based on this objectives tree, certain means are feasible and some are perhaps outside
the scope of the problem.
 Nonetheless, these means provide the foundation for developing Programmes, projects
or strategies to address the problems discussed earlier.
After completing the situation analysis, the next major step in the LFA is the strategy analysis.
3.2.3: Meaning of log frame, element of log frame and development of log frame matrix
A log frame is a tool for improving the planning, implementation, management, monitoring and
evaluation of projects. The log frame is a way of structuring the main elements in a project and
highlighting the logical linkages between them.

Logical Framework Matrix
Narrative Objectively Verifiable Means of Important

Summary Indicators (OVI) Verification (MOV) Assumptions
GOAL
PURPOSE
OUTPUTS
ACTIVITIES INPUTS
Key Features of Logical Framework Matrix
 The LOGFRAME MATRIX is a participatory Planning, Monitoring & Evaluation tool whose
power depends on the degree to which it incorporates the full range of views of intended
beneficiaries and others who have a stake in the programme design.
 It is a tool for summarizing the key features of a programme and is best used to help
programme designers and stakeholders.
 Develop a common understanding of the expectations of a programme by delineating a
hierarchy of aims;
 Define indicators of success and establish criteria for monitoring and evaluation;
 Define critical assumptions on which the programme is based; and
 Identify means of verifying programme accomplishments
Log frame matrix serves following functions
 A tool for planning a logical set of interventions.

 A tool for appraising a Programme document.
 A concise summary of the Programme.
 A tool for monitoring progress made with regard to delivery of outputs and activities.
 A tool for evaluating impact of Programme outputs, e.g. progress in achieving purpose
and goal.

Examples of LFA
3.2.4: Time management and development of work plan/GANNT chart, its importance in
project management.
Time Management
 Time is money. Time is the greatest resource. Time is a highly perishable commodity an
individual possesses.
 We have to be concerned in managing time more effectively for greater accomplishment.
 Organizing One's Job to Function More Effectively
 From the management, point of view, Peter Drucker has come out with a very strong
notion which unwarily every manager knows it. He said “Time is the scarcest resource,
and unless it is managed, nothing else can be managed”.
 It does appear that time is most valuable resource a manager has and if he can manage it
effectively and efficiently by consideringcertain concepts of ‘Time Management System’,
he will be able to manage any other resources.
To make it more concise, generally speaking, there are six steps in managing time:-
 Analyzing time use- discovering what is happening now and what should be changed.
 Clarifying objectives establishing a basis for evaluating the best use of our time.
 Setting priorities focusing on the activities that are most valuable
 Planning time- making sure that our activities match our objectivities
 Scheduling –arranging our day to get more done in less time
 Evaluating Programmes-determining if things are working out well

Tips on Time management
 Start day early

 Plan your work and work you plan
 Have daily to-do list
 Prioritize your work into: important and urgent: important and not urgent :urgent but not
important
 Be punctual
 Do the most important work during your best time
 Use time savers like photocopying and computers
 Make best use of your personal staffs. Don’t do what your Personal Assistant can do
 Keep reference book handy
 Be specific and effective in communication
 Use time-intervals judiciously. Make the most of travel and commuting time
 Devote at least 15 minutes to regular physical exercise
 Spare time for relaxation and recreation
 Spend adequate time with the family
 Audit periodically the time spent
Development of work plan/GANNT chart
Gnatt chart/Origins of the Tool
 In the late 1800s, Polish engineer Karol Adamiecki developed a visual work flow chart
that he called a "harmonogram." A Gnatt chart is a visual project management tool
developed by Henry Laurence Gnatt, an American mechanical engineer and social
scientist.
 In around 1910, Henry Gantt, a management consultant and engineer, took Adamiecki's
concept to the next stage.
 His chart was designed to help manufacturing supervisors see whether their work was
on, ahead of, or behind schedule, and it formed the foundation of the tool we use today.
The main objective of a Gantt chart is to assess how long a project should take and to
establish the order in which tasks need to be carried out by the ending of the project
o It is a graphical representation of the duration of tasks against the progression of
time also known as bar chart, time line or milestone chart.
o In other words, they can show the progress and the detailed time frame, from start
to finish, for an assignment.
o It is frequently used in project management, it provides a graphical illustration of a
schedule that helps to plan, coordinate, and track specific tasks in a project.
o It displays time on the horizontal axis and arranges the activities vertically, from top
to bottom, in the order of their start dates.
o The horizontal position of the bar shows the start and end of the activity, and the
length of the bar indicates duration.
o Provide a graphical illustration of a schedule that helps to plan, coordinate and track
specific task in a project.
o A Gnatt chart is a useful tool for planning, scheduling projects and monitoring a
project's progress.
o It lets you see immediately what should have been achieved at any point in time.
o A Gnatt chart lets you see how remedial action may bring the project back on course.

The purpose of Gnatt Chart
 To illustrate the relationship between project activities and time.

 To show the multiple project activities on one chart.
 To provide a simple and easy to understand representation of project scheduling.
Steps to create a Gnatt chart
 Determine project start date and deadline.

 Gather all information surrounding the list of the activities within a project the work
break done structure may be useful for this.
 Determine how long each activity will take.
 Evaluate what activities are dependent on others.
 Create Graph shell including the timeline and list of activities.
Advantages
 It is simple and visual.

 It is very easy to explain to someone who has never seen Gnatt chart before.
 It gives a clear illustration of project status.
 It allows easily monitoring the progress of a project and checking the allocation of
resources.
 It is a common technique for representing the phases and activities of a project.
 It can be adjusted frequently to reflect the actual status of project tasks as they diverge
from the original plan.
 Provide a schedule of earliest possible start and finish time activities.
Limitations
 It also fails in showing the critical and non-critical tasks.

 It does not show detail information for every activity.
 It communicates relatively little information per unit area of display so it is not suitable
for large projects with more than 30 activities.
 Larger Gnatt chart may not be suitable for all computer display.
 Changes to the schedule require a redrawing of the chart.
 Estimates must be completed before the chart can be drawn.
 Horizontal bar of the Gnatt chart have fixed height so they can misrepresent the time-
phased workload (resource requirement) of the project.
 It doesn’t give a clear indication of interdependence of the various activities.
 It doesn’t give what activities must be completed on schedule to ensure the project
completed as planned
Importance of GANNT chart

Gantt charts are useful for planning and scheduling projects. They help you assess how long a
project should take, determine the resources needed, and plan the order in which you'll complete
tasks. They're also helpful for managing the dependencies between tasks. They are useful tools
for analyzing and planning complex projects.
 Help in planning out the tasks that need to be completed.

 Give a basis for scheduling when these tasks will be carried out.
 Allow to plan the allocation of resources needed to complete the project, and
 Help you to work out the critical path for a project where you must complete it by a
particular date.
 When a project is under way, Gantt Charts help to monitor whether the project is on
schedule.
3.3: Project Budget sources
3.3.1: Concept and definition of budget
 An estimate of costs, revenues, and resources over a specified period, reflecting a reading
of future financial conditions and goals.
 One of the most important administrative tools, a budget serves also as a
o Plan of action for achieving quantified objectives,
o Standard for measuring performance, and
o Device for coping with foreseeable adverse situations.
 A budget is a statement of future expenditure for planning and controlling project’s
financial resources.
 The budget is a plan for income and expenses for certain period of time usually one year
period.
 A budget is a statement of future expenditures and incomes for planning and controlling
financial resources. It is generally one year period.
 Budget is a plan for allocation of resources and a control making sure that results comply
(fulfill, abide by) with the plans.
 “Budget is an operational plan for a definite period usually a year expresses in financial
terms and based on expected income and expenditure”.
 “Budget is formal quantitative statement of the resources set aside for carrying out
planned activities over periods of time” (Stoner, 1995).
Purpose of Budget:
 The primary purpose is to ensure the most effective use of scarce financial and non–
financial resources.
 The secondary purposes are:
o To coordinate efforts among the department or units within the organization;
o To provide the frame of reference for the managerial decisions;
o To provide criterion for measuring the managerial performance.
Advantages:
 Provides standards for comparing actual performance.

 Improves allocation and utilization of resources.
 Promotes effective pre-control, anticipates future changes.
 Anticipates problems for timely corrective actions.
 Improves communication and coordination.
 Motivates people, promotes cooperation and team spirit.
 Promotes record keeping.

Disadvantages:
 Rigidity and inflexibility. No room for unusual events.

 High standards can demotivate people..
 Promotes waste. Managers tend to spend all budgeted resources at the last minute.
 Requires too many paper works.
 Emphasizes quantifiable goals at the cost of qualitative goals.
 Innovation can be retarded.
 Conflicts can occur differing perceptions about budgets.
 Estimates can prove inaccurate.
3.3.2: Importance of funding, source of funding
Funding is the act of providing financial resources, usually in the form of money, or others values
such efforts or time, to finance a need, program, and project, usually by organization or
government.
Importance of funding
 For effectively conduction of project activities.

 For development of infrastructure.
 Helps in estimation of future project and programs.
 Triages the programs towards the goal.
Sources of funding for projects
Project finance may come from a variety of sources. The main sources include equity, debt and
government grants. Financing from these alternative sources have important implications on
project's overall cost, cash flow, ultimate liability and claims to project incomes and assets. Some
source of funding is as follows:
 Personal investment
 Venture capital
 Business incubators
 Government grants and subsidies
 INGOS/NGOS supports
 Bank loans etc
3.3.3: Transparency of project fund process
Transparency in Project Management: The more knowledge someone has about the status of
a project, the easier it is to make a decision. If we can transparent in all level of project activity it
would be better for the organization.
Evaluator can evaluate of Project transparency from the following:
 The content/wording of the tors

 The content/wording of the invitation to tender
 The draft of the final report
Evaluator can also participate and cooperate in the following activities
 Project presentations by bidders

 The selection of a bidder for the contract award
 Presentations of interim findings

 The acceptance of the final report
 Presentations of the findings
 Public presentations of the final report
3.3.4: Types of fund
 Revenue
 Grants
 Foundation (non-profit)
 Investment
 Crowd funding
 Seed money
 Micro finance
 Mutual fund
 Trust Fund
 Equity fund and
 others

UNIT 4: PROJECT IMPLEMENTATION PHASE
4.1: Implementation
4.1.1: Concept, phase of implementation
Project implementation
Concept
 The allocation of project tasks to project team within the project organization.
 It is based on plans and design set down during the project planning phase
 Project should be implemented effectively
Phase of project implementation
1. Preparing for project implementation
2. Engaging and supervising consultants
3. Contracting for civil works: prequalification’s, tendering, awarding contract
4. Procurement of goods, services, equipments
5. Supervision of equipment installation and civil works
6. Receiving project budget
7. Monitoring and control.
1. Preparing for project implementation
Step for implementation, It involves
 Establishing the project office

 Acquisition of human resources
 Defining and assigning responsibilities: every member of project team is provided with
job description specifying
o Duties and responsibilities
o Authority
o Accountability for results
 Establishing a project information system.
2. Engaging and supervising consultants
Necessary guidelines should be followed for the appointment of competent and experienced
consultants. Projects generally use consultants for specialized activities such as:
 Engineering design preparation and review

 Preparation and review of bidding documents
 Evaluation of bids
 Supervision of civil construction works
 Other specialized activities etc.
3. Contracting for civil works
 Guidelines, procedures, financial rules and regulation are followed for contracting of civil
works
 Selection of contractors is based on
 Tender document(including engineering design)
 Prequalification of contractors

 Notice for call of tender bids. A pre-bid meetings held
 Evaluation of tender bids and selection of contractor
 Contract agreement with the selected contractor
 If the project is donor-funded, the guidelines prescribed by the donors must be followed
for award of the contract.
4. Procurement of goods, services, equipment
 Financial rules and regulations and guidelines for procurement of required goods,
services and equipment for the projects are followed
 Procurement can be through direct purchase from the market
 Quotation-based, generally three quotations are required
 Tender-based, which can be local, national or global
5. Supervision of equipment installation and civil works
 The installation of machinery and equipment by the suppliers must be properly

supervised
 The construction of civil works should also be supervised by project consultants and
technical personnel
 Deviations from design and specifications should be corrected
 Contract administration procedures should be followed
6. Receiving project budget
 The financial resources for the project are required from the donor or customer
 International donor agencies generally provide budget on a reimbursement basis
 A separate project account is opened in the bank for each project
7. Monitoring and control
 Both physical and financial performance is monitored and controlled

 Time, cost and quality are also controlled
4.2: Control
4.2.1: Project control
 According to koontz and weihrich,” Controlling is the measurement and correction of

performance in order to make sure that enterprise objectives and the plans devised to
attain them are accomplished. “
 Continuous process that ensures that the right things are done in the right manner and at
the right time
 Measuring, evaluating and correcting actual performance to achieve planned targets
Types of control
1. Precontrol (feed-forward control):inputs-based
2. Concurrent control(yes-no control): transformation based
3. Post control(feedback control)
Project control process

1. Setting standards (what should be done?)

2. Measuring performance (what actually was done?)
3. Finding deviations(extent and causes of differences):comparison of actual performance
with standards
4. Corrective actions(future standards)
a. Do nothing
b. Correct deviations
c. Change standards
4.3: Monitoring
1. Institutional Monitoring
2. Context Monitoring
3. Results Monitoring
4. Objective Monitoring
5. Project Monitoring Matrix
1. Institutional Monitoring
 This category refers to internal monitoring of financial, physical and organizational issues
affecting the project.
 Financial monitoring tracks project inputs and costs by activity within predefined
categories of expenditure.
 Physical monitoring tracks the distribution and delivery of project activities and
outputs/interventions.
 Organizational monitoring tracks sustainability, institutional development and capacity
building in the project and direct partners.
2. Context Monitoring
 The process of tracking the context in which a project is operating, as it affects critical
assumptions and risks to the project.
 This includes monitoring institutional and policy issues that may affect the capacity of the
project to act or the capability of the target population to respond to the project.
 These concerns are handled to some extent during monitoring, but principally during
evaluations.
3. Results Monitoring
 The process of tracking project effects (target population responses to project

outputs/interventions) and project impacts (the contribution that the project makes to
fundamental and sustainable change for the target population).
 Concerns about effects are handled to some extent during monitoring, but mostly by
evaluation.
 Assessment of impacts is rarely dealt with by monitoring, and is principally in the domain
of evaluation.
4. Objective Monitoring
 The process of tracking project objectives and strategies for continuing relevance to the
target population and its changing needs
5. Project monitoring Matrix

 Monitoring refers to the timely gathering of information to review of project
implementation
 On-going management review key factors of project implementation performance
 Aims to ensure that projects inputs, schedules, outputs and other actions are proceeding
according to the project plan.
4.4: Control
Control is essential function of management.
 It ensures that right things are done in the right manner and at the right time.
 Control is measuring, evaluating and correcting actual performance to achieve panned
targets.
4.4.1: Financial control process
 Any financial performance process becomes meaningless if a strategy to control it is not

defined and implemented based on objectives consistent with the current state of the
company and its upcoming projects.
 Financial control may be construed as the analysis of a company's actual results,
approached from different perspectives at different times, compared to its short, medium
and long-term objectives and business plans.
 Financial control must be designed on the basis of very well defined strategies if the
directors of the companies are to be able to:
o Detect anomalies in budgets, balance sheets and other financial aspects.
o Establish different operational scenarios putting profitability, sales volume and
other parameters to the test.
Steps or process of financial control in project
Step 1. Analysis of the initial situation
 The first step is to conduct an exhaustive, reliable and detailed analysis of the company’s
situation across various areas: cash, profitability, sales, etc.
Step 2.Preparation of Forecasts and Simulations
 On the basis of the initial situation analyzed above and the establishment of a set of
parameters or indicators, a set of forecasts and simulations of different contexts and
scenarios can be prepared.
 These simulations are immeasurably helpful in making appropriate decisions on such
crucial aspects as investments, profitability, changes in production systems, etc.
Step 3. Detection of deviations in the basic financial statements
 The basic financial statements are the documents which must be created by the
company in preparing the annual accounts.
o The three most important documents are the general balance sheet, the profit
and loss account and the cash flow statement.
o These analyses and tests in different environments are a fundamental part of
financial control, since they permit problems, errors and deviations from the ideal
situation or initial objectives to be detected early
Step 4. Correction of deviations

 Financial control would have very little practical use if the proper decisions relating to
corrective actions were not taken to get the company accounts on the right track as
previously established in the organization’s general objectives
4.4.2: Human resource control process
 Processes that plan, staff, organize, & manage project teams.

Core processes
 Human Resource Planning

 Acquiring the Project Team
 Developing the Project Team
 Managing the Project Team
Human Resource Planning
Determining project roles, responsibilities, and reporting relationships culminating in the staffing
management plan.
Inputs
 Enterprise environmental factors

 Organizational process assets – Managerial Databases.
Tools & Techniques
 Organization charts and position descriptions

 Networking
 Organizational theory.
Outputs
 Designation of required roles & responsibilities

 Project organization charts
 Staffing management plan
Acquire Project Team
 Process of obtaining the human resources needed for completing the project.
 Inputs
 Tools & Techniques
 Outputs
Develop Project Team
 Plans targeting the improvement of team competencies and interaction of team members
to enhance project performance throughout the project life cycle.
Objectives
 Improve skills of team members in order to increase their ability to complete project
activities.
 Improve feelings of trust and cohesiveness among team members in order to raise
productivity through greater teamwork
 Activities control process

4.4.3: Activities control process
 Control is applied to detect problems early enough to take :
◦ The appropriate corrective actions,
◦ Keeping the project on schedule, within budget, and
◦ Completed according to specifications.

Activity control process
 Define management style
 Establish control tools
 Preparation of Project schedule
 Make Change Orders

Define management style
There are different management styles. Project /Task manager should carefully choose
appropriate management style for project success.
 Autocratic: The manager makes decisions alone.
 Supportive: The manager makes decisions, then attempts to influence followers by

selling his / her idea, gathering support for his / her idea, and stirring enthusiasm among
subordinates.
 Consultive: The manager discuss with subordinates to gather information, then makes
the decision himself / herself.
 Democratic: The manager solicits not only information from subordinates but also
request their involvement in the generation of alternatives and selection of decision.
Establish control tools
 Controls tools are designed to focus on major components of a Project:-

1. Performance levels
2. Costs, and
3. Time schedules.
 Three reasons for using control tools are:
1. To track progress— through periodic reporting system(monthly)
2. To detect variance from plan----- through variance, graphical report)
3. To take corrective action(according to reports)
Common control tools are
 Variance reporting tools,

 Graphical reporting tools
 Exception reporting tools, and
 Gantt Charts
Variance reporting tools
 Is the simplest reporting tools.

 It provides a snapshot in time of the status of the project or any of its activities.
 By comparing the planned schedule of activities with what actually happened, the project
manager will be aware of variances from plan and help to take appropriate corrective
measures.
Project variance report:
Project Variance report Project Name Project Manager Date
Cost ---- Labor------ Time------Others
Activity Budget to Date Budget to Date
No Name Manager Plan Actual Vari Plan Actual Vari
Total
Prepared by Date Approved by Date
Establish control tool
 The project manager has delegated the appropriate responsibility and authority to the
work package managers to complete their work on time, within budget, and according to
specifications.
 The reporting and control system is compatible (well suited) with that of the organization.
 The reporting system will alert the project team about out-of-control situations early
enough to take positive corrective action.
Graphical reporting tool
 A simple graphical way to convey the variance from plan information with cumulative
cost or time.

 Managers' time is valuable. To force them to read page after page of data is to waste their
time.
 A report that identifies actual performance and clearly display the variance.
 For example, the project manager may want to be alerted to any variance that is more
than 10 percent above or below plan.
Exception report
 It is a very important piece of document that is essential to the proper and effective
functioning of a project.
 It actually itemizes and documents the major mistakes, or mishaps (unfortunate events).
 Essentially the things that went wrong.
 It provides a carefully written documentation of the mistakes for look back at a later point
within the life of a project, hoping of avoiding making the same mistakes again;
 However, it is also important for future projects.

GANTT chart
 A Gantt chart is one of the most convenient, most used, and easy-to-grasp depiction
(picture) of project activities.
 It is a two-dimensional graphical representation of the activities that include in the

project.
 The vertical dimension lists the project activities-one per line-while the horizontal
dimension is time.
 Once the scheduled start and completion date of each activity has been determined, the
Gantt chart can be constructed.
 The value of a Gantt chart is the scaling of project activities according to their duration.
Preparation of Project schedule
 The project manager uses the schedule to help plan, execute and control project tasks and
to track and monitor the progress of the project.
 The project schedule defines timelines for key deliverables and sets expectations for
project progress and completion.
Who is involved?
 Project Manager
 Project Team
 A project schedule designates work to be done and specifies deadlines for completing
tasks and deliverables. The project schedule depicts:
o Time (duration) estimates for all project tasks

o Start and finish dates for the tasks
o Names of staffs assigned to complete the tasks
o Sequence of tasks
 A major component of a project schedule is WBS. The project schedule is constructed to

reflect the WBS.
Make Change Orders
 A change order is a document that contractually alters an original agreement between the
signed parties.
 Change order is directed by the owner or request by the contractor.
 It helps to make significant change during project.
 Depending on its specific requirement, a change may or may not impact a project’s
contractual cost and schedule.
 If cost is affected, a change may be increased or credited.
 Similarly, the duration of activities in a project schedule is identified with change may be
extended or reduced.
4.5: Evaluation
Project evaluation
 Evaluation is an objective and systematic judgmental process for determining relevance,

efficacy, effectiveness and impact of project performance
 Done to improve project implementation and to improve future project planning and
decision making
Objectives of project evaluation
 To verify whether the project implementation progress is as planned

 To take corrective measures for deviations in performance
 To ascertain that actual costs are within the budgets
 To ensure that quality standards are being attained
 To report project progress status to customer as needed
 To identify unexpected problem areas and manage them
 To bring about overall improvement in project performance to achieve project objectives.
Evaluation
 Evaluation is an objective and systematic judgmental process for determining relevance,

efficiency, effectiveness and impact of project performance.
 It is assessment of project during implementation.
 Evaluation is done to improve project implementation and to improve future project
planning and decision-making.
 It is an external activity in the project.

4.5.1: Programme evaluation
 Baseline study
 Annual review
 Mid-term evaluation
 Final evaluation
 Ex-post evaluation
Baseline Study
 The assessment of a selected set of indicators about target population conditions after
project start-up but before the beginning of project interventions.
Annual Review
 The internal assessment of the performance and progress of a project’s development over
successive one-year periods.
 Usually includes an assessment of effects (target population responses to project
outputs/interventions) and project strategies
Mid Term Evaluation
 Usually an external (and thus ‘objective’) assessment of a project, which focuses on its
performance, organizational capacity, and mid-course corrections to improve
achievement in the remaining project period.
Final Evaluation
 An external or internal assessment of the effects and impacts generated by the project, as
well as cost-effectiveness or cost-benefit assessment.
 Usually done just before or just after the project ends.
Ex-post evaluation
 An external and in-depth study of the impact of a project on the target population.
 The preferred interval between project termination and an ex-post evaluation is 5-10
years.
 Rarely done due to lack of donor willingness to fund

4.5.2: System evaluation
 Input, Process and output

UNIT 5: PROJECT TERMINATION PHASE
5.1: Concept of termination, importance of termination
Concept of termination
 The final phase is termination “The Day the Project Died”

 Project termination is one of the most serious decisions a project management team and
its control board have to take.
 Every project has to officially end sometime.
 This close date should agree with the master plan.
 A project may be terminated for a variety of reasons such as successful completion, low
probability, no solution, intellectual property issues etc.
 The closure phase evaluates the efforts of the total system and serves as input to the
planning phases for new projects.
 This final phase also has an impact on other ongoing projects with regard to identifying
priorities.
Types of Project Termination
According to Jack Meredith and Samuel Mantel (1989) there are three types of project
termination:-
1. By extinction,
2. By inclusion, and
3. By integration.
Termination by extinction
 It means the project work as scheduled is either successfully or unsuccessfully done and
the decision to terminate is agreed upon.
 Closing relationships and preparation of the final report must be completed.
 This type of termination may cause more stress if the originally planned goals of the
project may not have been achieved.
 The project may end because it has been successful and achieved its goals
 The project may also be stopped because it is unsuccessful or has been superseded.
 A special case of termination by extinction is “termination by murder” which can range
from political assassination to accidental projecticide.
Termination by inclusion
 It means the project is a success and is institutionalized into the organization.

 This type of termination is seen as a transformation process of the project into the larger
organization.
 The project manager must take special care to ensure a smooth transition.
Termination by integration
 It is the most common way of closing successful projects.

 Project equipment, material, and personnel must be distributed back into the parent
organization
 It is also the most complex.

Importance of termination
 For obtaining client acceptance of the project work and deliverables.

 For ensuring that all deliverables have been installed or implemented according to time
and budget.
 For ensuring adequate project documentation and baseline information that may need in
future.
 For issuing the final report which shows that the contracted deliverables have been
satisfactorily implemented.
 For closing all external and internal relationships.
5.2: Process of termination
 Termination process can be as complicated and lengthy as the size, complexity, and scope
of the project itself.
 A systematic process is required to assist the PM in order to terminate contracts and
relationships successfully.
Steps of Termination process
1. Prepare Termination logistics,
2. Document the Project,
3. Conduct post-implementation audit and prepare and submit final report,
4. Obtain client approval, and
5. Close operations.
Prepare termination logistics
 Assign a termination manager and staff

 Conduct a termination meeting to review this process.
 Prepare project personnel termination reports.
 Close down project office and reporting systems.
 Terminate all financial documents; complete all payments and expenses; collect all debts;
prepare the financial project closing report.
 Terminate all work orders, contracts, assignments, and supplier and customer
responsibilities.
Document the project
 “Any text or pictorial information that describe project deliverables”

 Document completion and compliance with all vendors and contractors.
 Close all project sites and return all project equipment and review.
 A detailed documentation will allow future changes to be made without extraordinary
effort.
Conduct post-implementation audit and prepare and submit final report,
 Conduct and complete post-implementation audit.

 Complete final report.
 Submit to client.

Obtain client approval
 The client decides when the project is done.

 It is project manager’s job to demonstrate that the deliverables (products/services) meet
client specifications.
 For small projects, this acceptance can be very informal and ceremonial.
 Ceremonial acceptance is an informal acceptance by the client. It simply happens.
 For eg.- if the project is to plan and conduct a conference, the conference will happen
whether or not the project work has been satisfactorily completed.
Close Operations
 Complete termination of all operations.

 Close all physical sites and terminate remaining project staff.
5.2.1: Termination handover
 Project termination evaluation and its component

 Project sustainability and its importance
5.2.1.1: Project termination evaluation
 After the project closer, it is important to undertake an Evaluation.(After 1 to 3 months)

 Also referred as Post Implementation Review (PIR).
 This allows identifying the level of success of the project and listing any lessons learned
for future projects.
 Evaluation is often carried out by an independent person to provide an unbiased opinion
of the project outcome.
 Review the project performance to determine whether the project delivered the benefits,
met the objectives, Operated within the scope, and produced the deliverables on time,
within budget and using the allocated resources.
 Determine whether the project conformed to the management processes specified in TOR.
 Identify the key project achievements, failures and any lessons learned for future
reference.
 Identify the extent to which the project has conformed to the management processes (as
set out in the TOR) during the Execution phase of the project. These are:- Time
Management, Cost Management, Quality Management, Change Management, Risk
Management, Communications Management and Acceptance Management
 List the major achievements for this project and describe the positive effect that each
achievement has had on the customer's business.
 List any project failures and describe the effects they have had on the customer's business.
 Describe the lessons learned from undertaking this project and list any recommendations
for similar projects in the future.
Component of project termination evaluation
 Purpose
 Audience
 Issues
 Resources
 Evidence
 Data gathering technique

 Analysis
 Reporting
5.2.1.2: Project sustainability and its importance
 Sustainability is about balancing or harmonizing social, environmental and economic

interests.
 Sustainability takes into account the full life-cycle of the project.
 People, Planet, Profit
 Sustainable Project Management
 The management of project-organized change in policies, assets or organizations, with
consideration of the economical, social and environmental impact of the project, its result
and its effect, for now and future generations.
 Implications
o Sustainability in PM processes and methodologies
o Sustainability in PM reporting
o Sustainability in PM competencies
Importance of Project sustainability
 To develop prosperity, without compromising the life of future generations.

 To organize change in policies, assets or organizations for next generation.
 To balance social, environmental and economical interests.
 To sustain and enhance the human and natural resources that will be needed in the future.
5.2.2: Project end
 The cycle is completed only when the development objectives are realized. Closing the
project with a celebration of the effort. The project manager's last effort is to bring the
team together to review their journey. This is a way of closing informal as well as formal
relationships.
 Not all projects terminate on a cheerful mood.
 A final meeting, party, dinner, or celebration brings the project life cycle full circle come
to the end
Importance of Termination
Time to move on: when a project is nearing completion, It is tempting for project
manager and team to turn their focus to the next project in the horizon and start to put
their efforts in to new pieces of work rather than closing down the current project
correctly before moving on.
 Confirmation of objectives being met: at the end of each engagement we must

pause and ask ourselves, "Did we accomplish what we set out to do?"
 Sense of Closure: Confirming that objectives have been met to the client's
satisfaction gives the client and the project team a sense of accomplishment and
closure.
 Improving future engagements: unless we look back and reflect on each
engagement, it is impossible to learn from it. during the project closure process,
it is essential that a lessons learned meeting happen with the client and another
with the internal team

 Capturing the Knowledge: as part of the lessons learned session, the team should odentify project
assets

Project End
 An information system project must be administratively closed once its products

is successfully delivered to the customer
 A failed project must also be administratively closed
 A deadlocked project (drastic change of focus, Support, personnel, executive
decision, etc) must be administratively closed
Project Closure
Three broad activities ar carried out at the closing stage of the project:
 Administrative closure of contracts and accounts

 Performance appraisal and individual evaluation
 Project Audit
Administrative Closure
Following activities must be address in the project closure plan:
 Identifying tasks necessary to close the project

 Assigning individuals to carry out closure tasks
 Monitoring implementation
 Ending Closure Process

UNIT 6: PROJECT ANALYSIS
6.1: Concept of project analysis, Benefits of analysis
Concept of project analysis
 The project analyst provides critical data support to a technical team.
 Research and analysis functions may include budget tracking and financial forecasting,
project evaluation and monitoring, maintaining compliance with corporate and public
regulations, and performing any data analysis relevant to project tasks.
 Project analysts define key performance parameters and create regular variance reports
to track progress.
 A project analyst is an individual that analyzes, reviews and documents the requirements
of a project throughout its lifecycle.
 He or she helps the entire project team complete the project within its planned scope,
schedule and budget, while serving as a liaison for the project's technical, functional and
non-functional teams.
Techopedia explains Project Analyst
 Although a project analyst's job roles vary by organization and project setting, the
primary responsibilities are performing, analyzing and providing project analysis and
support to the entire project team
 A project analyst is generally a junior/mid-level position that works with or directly
reports to the project manager. The project analyst level includes few tasks requiring
critical decision making skills.
Benefits of analysis
 It creates & manages reports related to the project
 It maintains project assets, communication and related database.
 It evaluates and monitors the overall project.
 Reviewing and reporting the project’s budget and finances.
 Routinely performing complete or component analysis
 Notifying the entire project team about abnormalities or variances.
6.2: Meaning of efficiency and effectiveness
What is Efficiency?
 It is a level of performance that describes a process that uses the lowest amount of inputs
to create the greatest amount of outputs.
 It can also be stated as the act of being adequate in performance with a minimum of waste,
effort, time.
 Efficiency can only be delivered by improving productivity, procurement processes,
working practices
Meaning of Effectiveness

 It is the capability of producing a desired result.
 When something is deemed effective, it means it has an intended or expected outcome, or
produces a deep, vivid impression
6.3: Meaning of output, outcome, effect and impact analysis
Output:
 Outputs are those results which are achieved immediately after implementing an activity.
For example, if we are organizing a workshop on human rights, participants who attended
it have now got a clear understanding on human rights issues. So, this is an output the
project has achieved and it is achieved right after the conclusion of the workshop.
 The term output refers specifically to any particular services, results, and or products that
are generated as a result of a particular project related process.
 Output can come in a multitude of formats from written long form reports, written short
form reports, other verbal means of output.
 Output may also be a formalized type of material or it can be inform and in some cases
informational only.
Outcomes
 Outcomes can be considered as mid-term results. They are not seen immediately after the
end of the project activity. But after some time, when we see some change at the ground
level because of the project activity, then it can be termed as an outcome.
 Taking the above example of a human rights workshop, if the participants have started to
mobilize their community members to seek their human rights, then it is an outcome of
the project.
 Results of the changes derived from the use of the project's specialist outputs by the users.

 Outcomes typically start to be achieved after the handover of the project's specialist
products to users.
Effects:
A change which is a result or consequence of an action or other cause. "the lethal effects of hard
drugs"
Impact analysis
 The Impact Analysis is part of a packet designed to support the evaluating and tracking of
a suggested modification to a project's scope.
 The Impact Analysis contains the results of the analysis performed by the Change
Business Analyst related to the implications that the change will have on the project and
other projects if approved.
 The packet goes through three phases.
 The entire packet is designed to drive the change request process and to become a
permanent record of each specific request.
6.4: Programme Evaluation Review Technique/Critical Path Method

Network Analysis:
A network is a graphic plan of all events and activities to be completed in order to reach an end
objective. It brings greater discipline in planning.
The two common types of network techniques are;
1. PERT (Programme Evaluation Review Technique
2. CPM (Critical Path Method)
PERT (Program Evaluation Review Technique): A methodology developed by the U.S. Navy in the
1950s to manage the Polaris submarine missile program. A similar methodology, the Critical Path
Method (CPM) was developed for project management in the private sector at about the same
time
CPM (Critical Path Method) is used to assist the project manager in scheduling the activities (i.e.,
when should each activity start). It assumes that activity durations are known with certainty.
PERT (Program Evaluation and Review Technique) is used to assist in project scheduling similar
to CPM
 PERT represents a major advance in management practice.

 It was developed by Booz-Allen-Hamilton, management consultants, and the US Navy as
a method to plan and control the Polaris Missile Programme.
 The basic tool used in the PERT approach is the network or flow of plan.
 The network is composed of a series of related events and activities.
 Events are required sequential accomplishment points in the Programme or project.
 Activities are the time consuming elements of the Programme and actually connect the
various events.

 The important of PERT is to draw an arrow diagram as shown in figure below.
 The diagram represents the logical sequence in which events must take place.
 It is possible with such a diagram to calculate the time by which each activity must be
completed, and to identify those activities that are critical.
 This simple technique provides a basic discipline by which all concerned in a project can
know what is expected of them and to minimize any delays or crises in the
implementation of the plan.
 PERT is a useful management technique which can be applied to a great variety of
projects.
o It aids in planning, scheduling, and monitoring the project
o It allows better communication between the various levels of management, it
identifies potential problems
o It furnishes continuous, timely progress reports
o It forms a solid foundation upon which to build an evaluation and checking
system.
Steps in the PERT Planning Process
1. Identifying Activities and Milestones: The activities are the tasks required to complete the
project. The milestones are the events marking the beginning and end of one or more
activities. It is helpful to list the tasks in a table that in later steps can be expanded to
include information on sequence and duration.
2. Determining Activity Sequence: This step may be combined with the activity
identification step since the activity sequence is obvious for some tasks. Other tasks may
require more analysis to determine the exact order in which they must be performed.
3. Construction of the Network Diagram: Using the activity sequence information, a network
diagram can be drawn showing the sequence of the serial and parallel activities. For the
original activity-on-arc model, arrowed lines depict the activities and circles depict
milestones. If done manually, several drafts may be required to correctly portray the
relationships among activities. Software packages simplify this step by automatically
converting tabular activity information into a network diagram.
Example of network construction:
4. Estimation of Activity Times: Weeks are a commonly used unit of time for activity to be
completed, but any consistent unit of time can be used, for example, hours or days. A
distinguishing feature of PERT is its ability to deal with uncertainty in activity completion
times. For each activity, the model usually includes three time estimates:
Optimistic time- generally the shortest time in which the activity can be completed. It is
common practice to specify optimistic times to be three standard deviations from the
mean so that there is approximately a 1% chance that the activity will be completed
within the optimistic time.

Most likely time- the completion time having the highest probability. Note that this time
is different from the expected time
Pessimistic time- the longest time that an activity might require. Three standard
deviations from the mean are commonly used for the pessimistic time.
Steps of CPM:
1. List the activities to be considered in approximate order.
2. Number the events, estimate the time required for each, and determine the antecedents.
3. Arrange the events in a CPM diagram showing the numbered events, time required, and
antecedent relationships with connecting lines.
4. Determine the earliest times for starting and ending the events.
5. Determine the latest times for starting the events.
6. Determine the critical path.
Comparison between PERT and CPM
BASIS FOR PERT CPM

COMPARISON
Meaning PERT is a project management CPM is a statistical technique of

technique, used to manage project management that manages
uncertain activities of a project. well defined activities of a project.
What is it? A technique of planning and A method to control cost and time.
control of time.
Orientation Event-oriented Activity-oriented
Evolution Evolved as Research & Evolved as Construction project

Development project
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
Estimates Three time estimates One time estimate
Appropriate for High precision time estimate Reasonable time estimate
Management of Unpredictable Activities Predictable activities

Nature of jobs Non-repetitive nature Repetitive nature
Suitable for Research and Development Project Non-research projects like civil
construction, ship building etc.
6.5: SWOT analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weakness,
Opportunities and Threats involved in a project or in a business venture.
 Strengths: attributes of the person or company that is helpful to achieving the objectives.
 Weakness: attributes of the person or company that is harmful to achieving the
objectives.
 Opportunities: external conditions that is helpful to achieving the objectives.
 Threats: external conditions which could do damage to the objectives.
SWOT matrix is an important matching tool that helps managers to develop four types of
strategies: i.e. SO, ST, WO AND WT. Matching key external and internal factors is the most difficult
part of SWOT matrix, and requires good judgment and there is no one best set of matches.
Strength (S) Weakness (W)
Opportunity (O) SO Strategy: ( use strength to WO Strategy: Overcome

take advantage of opportunity) weakness by taking advantages
of opportunities)
Threats (T) ST Strategy: (Use strength to WT Strategy: reduce weakness

avoid threat) and avoid/minimize threat)
Always match O with S (make SO strategy), O with W (make WO strategy), T with S (make ST
strategy) and T with W (and make WT strategy).
6.6: Overview of Environmental Impact Assessment (EIA)
 EIA can be defined as the study to predict the effect of a proposed activity/ project on the
environment.
 EIA compares various alternatives for a project and seek to identify the one which
represents the best combination of economic and environmental costs and benefits.
 EIA can often prevent future liabilities or expensive alternations in project design
Core values of EIA
 Integrity: the EIA process should be fair, objectives, unbiased and balanced.
 Utility: the EIA process should provide balanced, credible information for decision
making.

 Sustainability: the EIA process should result in Environmental safeguards. Environmental
Assessment has many benefits:
 Protection of Environment.
 Optimum utilization of resources.
 Saves overall time and cost of the project.
 Promotes community participation.
 Informs decision makers.
 Lays base for environmentally sound project.
Evolution and History of EIA
 Environmental Impact Assessment started as a mandatory regulatory procedure

originated in the early 1970s with the implementation of the National Environmental
policy act (NEPA) 1969 in the US.
 EIA process took off after the mid-1980s after World Bank adopted EIA for major
development project in which borrower country had to undertake the EIA under the Bank
supervision.
 Now in EIA is a formal process in more than 100 countries

UNIT 7: RISK MANAGEMENT OF PROJECT
7.1: Strategy change agenda
Strategic change agenda replaces traditional strategic planning with a guided strategic thinking
process for passionate, active leaders striving to make positive and lasting change.
To transform traditional strategic planning into an active, actionable, nimble process that maps a
customized path for positive.
The Strategic Change Agenda places more emphasis on the following:
 The changing context

 The capacity of the organization to focus on the future, maintain direction, and act
strategically
 Understanding the needs, interests and motives of the stakeholders affected.
 Assessing progress as well as performance
 Accountability based on trust
 Having those who implemented action plans develop them
 Engagement
 Becoming a learning organization
 Turning aspirations into reality
 Lasting change
These steps will engage the entire stakeholder's community in envisioning, supporting and
sustaining quality.
1. Clarification: clarity about beliefs, vision and mission
2. Discovery: community engagement using surveys, focus groups or interviews
3. Goal setting: To identify trends, patterns and key issues that may emerged
4. Development of assessment mechanism: milestones for measuring progress in the change
process.
5. Action planning: develop their own action plans with milestones and measures of
progress.
7.2: Planning the quality element
A project quality plan can improve the project management results by helping to complete the
project on time within the budget and with the required functionality.
The plan guides you in defining project goals, assigning the necessary resources, specifying
quality standards and identifying problems.
The first element of a project quality plan defines the objectives of the project.
Objectives are specific and measureable and include targets for the total cost and the completion
date.
Objectives may include milestones for project progress when the project can be completed in
clearly defined stages. The aim of this element of the project is to provide clear direction and a
basis for measuring progress
7.3: Decision Making and Risk Taking Skills
Decision-making is regarded as the cognitive process resulting in the selection of a belief or a
course of action among several alternative possibilities.

Risk: An uncertain event or condition that, if it occurs, has a positive or negative effect on a
project's objectives.
Process to managing project risks:
 Identify risks.
 Perform qualitative risk analysis.
 Perform quantitative risk analysis.
 Plan risk responses.
 Monitor and control risks.
Risk Taking Skill

Exploit: Seeking to eliminate the uncertainty associated with an opportunity to ensure that it
definitely happens.
Share: Allocating some or all of the ownership of an opportunity to another party who is best
able to capture the opportunity for benefit of the project
Enhance: Taking action to increase the probability and/or the positive impact of an opportunity
Accept: To take advantage of an opportunity.
7.4: Quick Information of Projects:
 Use the target language as the vehicle

 Design and carry out interpersonal Communication
 Create projects plans
 Build project teams and allocate resources
 See different view of task and resources
 Design and carry out interactive reading and listening comprehension tasks using
authentic
 Provide appropriate feedback in verbal and written
7.5: Contingency plan
A contingency plan is executed when the risk presents itself. The purpose of the plan is to lessen
the damage of the risk when it occurs. Without the plan in place, the full impact of the risk could
greatly affect the project. The contingency plan is the last line of defense against the risk
A contingency plan is a course of action designed to help an organization respond effectively to a
significant future event or situation that may or may not happen. A contingency plan is sometimes
referred to as "Plan B," because it can be also used as an alternative for action if expected results
fail to materialize.
This contingency Plan establishes procedures to recover the project following a disruption. The
following objectives have been established for this plan:
 Maximize the effectiveness of contingency operations through an established plan that

consists of the following phases.
o Notification/Activation to detect and assess damage and to activate the plan.
o Recovery to restore temporary operations and recover from damage.

o Reconstitution of systems and normal operations
 Identify the critical activities, resources, and procedures needed to carry out operations
during prolonged interruptions to normal operations
 Assign responsibilities to designated personnel
 Provide guidance for recovering operations during prolonged periods of interruption to
normal operations
 Ensure coordination contingency planning stakeholders and staff
7.6: Updating Project Assumption & Time Constraints

A factor in planning process that is considered to be true, real or certain often without any proof
or demonstration”
“Project Assumptions are events or circumstances that are expected to occur during the
project life-cycle. (PMBOK)
A constraint, in project management, is any restriction that defines a project's limitations; the
scope, for example, is the limit of what the project is expected to accomplish.
The three most significant project constraints -- schedule, cost and scope -- are sometimes known
as the triple constraint or the project management triangle. A project's scope involves the specific
goals, deliverables and tasks that define the boundaries of the project.
Time Constraints are placed on certain actions and filings in the interest of speedy justice, and
additionally to prevent the evasion of ends of justice by waiting until a matter is disputable.

UNIT 8: REPORTING
8.1: Definition and importance in project intervention
Project Intervention
 The act or fact of interposing one thing between or among others.

 Action taken to divert a unit or force from its track flight path or mission
 Intervention comes from the latin intervenire, meaning “to come between, interrupt”
 Often an intervention is intended to make things better, like the US government
intervention to give food and aid to Haiti after earthquake.
 Example: The community Based Intervention project are the collaborative pilot project to
create and promote new alternatives community based models and educational tools for
violence intervention and prevention.
Types of project intervention
 Direct intervention: typically involving with individual. A properly conducted direct

intervention is planned through cooperation between the identified individual or friends
and an intervention counselor, coordinate or educator.
 Indirect Intervention: involving work with a codependent family to encourage them to be
an more effective in helping the individual.
Importance of project intervention
 Ample time must be given to the specific situation.

 Basic guidelines should be followed in the intervention planning process.
 Coordination and communicating among stakeholders and project implementers
 Time management
 No internal conflict
8.2: Difference between reports and reporting
Report
 A report is any information work (usually of writing, speech, television or film) made with
the specific Intention of relaying information in a widely presentable form.
 A document containing information organized in a narrative, graphic or tabular form
prepared on ad hoc, periodic, recurring, regular, or as required basis.
 Reports may refer to specific periods, events, occurrence or subjects and may be
communicated or presented in oral or written form.
Reporting
 Reporting is the process of communicating the recorded information to the higher or any
other level.
 Reporting is the written or oral information communicated to the higher level offices
about the programme activities, progress, problems and suggestions for improvement.
 Reporting and recording are interdependent activities.
 Reporting should be carried out at various intervals.
 Reporting is one of the most important managerial functions and thus should be carried
out promptly and accurately.

8.3: Types of reporting
1. Inception
2. Initial
3. Mid time
4. Draft and
5. Final reporting
Inception Report
 An inception report of an evaluation is prepared by an evaluator

 The key evaluation questions and methodology including information on data sources
and collection sampling and key indicators.
 The inception report also includes a timeline for the evaluation project and drafts of data
collection instruments
Initial: Also known as preliminary report.

Mid time: The reporting period is typically either for a month, quarter, or year or middle of
project time period.
Draft: A working draft (sometimes called a draft document) is a type of technical report that is a
work in progress, a preliminary form of a possible future document. A working draft indicates a
commitment on the part of the issuing organization to do further work in the area outlined in the
document.
Final reporting: The Project Final Report is intended to concisely summarize the outcomes of a
project. A Project Final Report is used to document project successes, lessons learned and
performance in order to signal improvement in project delivery for the future.
8.4: Mechanism of reporting and feed back

Reporting mechanisms are systems put in place to ensure that issues are brought to the
attention of an appropriate person, that information is properly recorded to meet legislative
requirements and to assist in future
Project feedback is an incredibly powerful tool that should be used to the project manager's
advantage in order to deliver a successful project. To Delivering feedback, especially for project
managers, is a hard thing to do but absolutely necessary.
Techniques of Report Writing Format and Content:

Part 1: Preliminary Pages
I. Title Page:
II. Acknowledgement
III. Table of contents
IV. Acronym/abbreviation
V. Abstract/Summary
Part 2: Main Body of the Report

Chapter One: Introduction and Methodology
1. Introduction
2. Background
3. Objectives
4. Rationale/Justification
Chapter Two: Methodology
Chapter Three: Body of Report Part 3: Conclusions
Part4: Recommendations/ Suggestion
Part 5: Reference/Bibliography
Part 6: Appendices
Techniques of Report Writing Format and Content:

A good must incorporates of following parts as its content.
Part 1: Preliminary Pages
a. Title Page: It includes title of the study, full name of the candidate, name of the institution
to which the report is submitted, name of the place and date when the reporting is done
etc. The title should convey, as briefly as possible the subject and contents of the report.
b. Acknowledgement
c. Table of contents
d. Acronym/abbreviation
e. Abstract/Summary: The purpose of an abstract is to enable busy people to get the gist of
the report without having to read it all.
Part 2: Main Body of the Report
Chapter One: Introduction and Methodology
1. Introduction: State the present situation or problem in the direction that you are going to
give your reporting. Try to limit to one and a half pages in on one and half line space. If it
happens to be more than one and half pages, attach the lengthy but informative part in
the appendix section.
2. Background: State briefly the reasons that motivated you to prepare the report. It could
be a meeting, a telephone call, a letter from authority or personal observation or a talk
with the authority.
3. Purpose and Objectives of the Study: Set objectives in relation to the problems stated
earlier. Objectives must be clear, unambiguous and must be in tune with the needs and/or
terms of reference (TOR) given. Generally, objectives are set directly as per the
specification of TOR where as in some cases specific objectives may be set right after
setting the general objectives.
4. Rationale/Justification: Regarding the type, nature and command area of your report, it
is advisable to mention a few words about the rationale/justification for achieving certain
level of progress in the report. On the other hand, it is also advisable to outline the
envisaged outcomes stating how progress could be accomplished against efforts put to
use.

5. Methodology: Explain clearly and specifically how you plan to achieve the objectives set
above. If different methods are envisaged to be employed in order to achieve each specific
objective, state them in separate paragraph under separate subheading and also outline
their expected outputs. For example;
a. Methodology to be used for achieving objective a or 1:
i. Conduction of seminar/training: (whom, where and when??)
ii. Outputs: in goods/services (quality and or quantity??)
6. Body of Report: The body of the report gives the facts and finding. There could be number
of subheading depending on the subject matter and type of investigation. A better
arrangement is to provide the general headings and an accompanying checklist from
which the writer can devise his own subheadings according to the requirements of the
report.
Part 3: Conclusions: The purpose of the conclusion of a report is to gather up the threads of the
argument and to present a considered judgment upon them. Nothing new should be introduced
at this stage.
Summing up should be;
 Consistent with what has gone before

 Reasonable
 Clear
 Concise and itemized where possible
Part 4: Recommendations/Suggestions: Sound recommendations are hallmark of a good
investigator.
 Sound
 Well defined
 Concise
 Itemized
 Discrete, especially towards the feelings of persons likely to be affected
 Fully considered, including their consequences, which should be stated and costed, where
appropriate?
Part 5: Appendices: True appendix material is that which the reader does not need to study in
order to understand the report, but which he may turn to if wishes to examine in detail the
supporting evidence. It includes;
 Statistical tables
 Detailed result of experiments, series of graphs
 Summaries of results obtained elsewhere
 Correspondence
 Lengthy quotations from outside authority
 Maps, charts and diagrams
Part 6: Bibliography: A bibliography is a list of works consulted by the author of the report. It has
two purposes:
 To show the extent to which the author ‘cast his net’ in gathering information.
 To help the reader, and particularly the student, to find suitale background reading matter
on the subject of the report.

References: References may be dealt with in three ways:
 At the foot of the page on which they appear

 At the end of the chapter
 At the end of the report
Technique of Report Writing:
 Keep the report short and specified

 Keep sentences short and try to avoid complex sentences. Do not forget to cut a word out
where it is possible.
 Write to express the facts, finding, and logical interpretation to justify the objectives of
your report. But do not to try to impress your audience in a roundabout way without any
supporting proof.
 Avoid jargons as well as metaphoric words. Use familiar words e.g. call a dog “dog” not a
“home guard”.
 Consider your readers, their outlook, profession, and experience. This gives a general hint
to use the words, language, and symbols in your report.
 Make it reader-centred or easily understandable by the readers, not writer-centred.
 Give visual impression to look the report attractive (get-up, layout, size and shape, font
size etc.).

UNIT 9: PROJECT PROPOSAL
9.1: Concept and its application
Concept of Project Proposal

A project proposal is a document that is used to convince a sponsor that a project needs
to be kicked-off to solve a particular business problem or opportunity. It describes in
depth, how the project is going to be commenced so that the sponsor understands what
is involved early.

A proposal consists of two parts i.e. technical and financial.

Technical proposal deals with technical details of the project while financial part deals
with activities evaluated in monetary terms.

Proposal is often the only way for the donor to choose or reject the project.

Write a proposal only when your project idea is already well thought out.

Fit to the donor’s guidelines

Project proposal is the document designed to present a plan of action, outline the reasons
why the action is necessary, and convince the reader to agree with and approve the
implementation of the actions recommended in the body of the document.
Application of Project Proposal


To avoid confusion when defining and managing a complex project,

To improve communication and information sharing between project team members,

To improve the assessment of the propagation (spread) of a change within the project.

To provide clear and specific guideline for project management.

To identify how much project implementation is crucial.
9.2: Types of project proposal

 Technical proposal
 Financial proposal
1. Technical proposal

A technical proposal, often called a "Statement of Work”.
Objectives: -
 Identify what work is to be done

 Explain why this work needs to be done
 Convince the reader that the proposers are qualified for the work, have a
 Credible (trustworthy) management plan and technical approach, and have the
resources needed to complete the task within the stated time and cost constraints.
Components of Technical proposal

 Statement of problem: Description of relevant problems with possible ways of solution
should be given.
 Special requirement: ways of handling special requirements of costumers should be
stated.
 Test and inspection: quality assurance, reliability and compliance should be noted.
 Logistics: plan for required logistic
 Reporting: nature and timing of reporting should be stated.
 Bio data: Bio-data of Key person and his responsibility should be attached
 Capability statement: past experience of organization should be stated
2. Financial Proposal
 A financing proposal contains the details on how you intend to achieve your business plan
outlining:
 Amount of money needed
 How that money will be used
 Expected returns
 Security
 Financial Proposal will be based on project plan, which is basically a written summary of
what your project is, where you intend to take it, and how you plan to get there.
Component of financing proposal:
 Cover page: company name, address, telephone number, email address, website and key
contacts
 Table of contents: referenced by page numbers
 Summary: one page about the company
 Industry Overview: overview of your business highlighting key dates and facts
 Management structure: background, qualifications and responsibilities
 The products and services
 The market: previous and forecasted financial performance of production and supply
 Financing outline: emphasizing application of funds
 Basic information: bank, accountants, lawyers, incorporation, board of directors;
shareholders
 Appendices: detailed management biographies, product literature, valuations of assets,
financial statements (preferably audited), detailed projections – profit & loss, cash flow
and major contracts.

9.4: Layout of Project proposal

9.5: Proposal Evaluation Criteria
 Relevance and effectiveness
 Feasibility and efficiency
 Impact
 Sustainability
 Capacity (HR and organizational)
Relevance and effectiveness
 Clear and well drafted
 All aspects of the proposals are based on international best practice
 Useful for customer and stakeholders
Feasibility and efficiency
 Reasonable budget for the proposed goals and activities
 Proper budget breakdown
 Get more from scarce resources
Impact
 Customer oriented
 Customer satisfaction
 Socio-economic growth of people
Sustainability
 Institutional sustainability Technical sustainability
 Socio-cultural sustainability Financial sustainability
Capacity (HR and organizational)
 Leadership team capabilities
 Return on investment in human capital
 Employees competency
 Training and development return
 HR function effectiveness
 Effectiveness of change effort
 Strategic goal
 Employees turnover
 Current and future competency
 Corporate culture

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BPH VIII SEMESTER

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA

 Have specific objectives to be completed within certain specifications.

Objective: A Project must have its objective or a set of objective.

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 1

 Project management is the application of knowledge, skills, tools and techniques to

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 2

 Lack of long range planning

1.3: Project constraints

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 3

 Identification of a new project is a complex problem.

1.6: The project life cycle

 Planning: Planning is a continuous process to prepare or formulate a development plans

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 4

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 5

2.2: Literature review

2.3: Identifying what has triggered your project

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 6

 It defines the final outcome in terms of the end product or services.

 The goal statement should be action-oriented, short, simple, straightforward, and

 The project goal statement is important for two reasons:

o It is a clear statement of what is to be done.

 The goal statement is specific, measurable, time-related, and provides direction.

 The goal can realistically be accomplished.

 The goal is manageable.

2.5: TOR, RFP

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 7

Request for proposal (RFP)

 RFP is a type of bidding process in which an organization announces that funding is

 Government agencies or other entities may be required to issue RFPs.

Structure of an RFP: Key sections of an RFP

 Why? Reasons why your organization need to buy a new solution.

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 8

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 9

3.1: Project Planning and Development Process

3.1.1: Understand project objectives

3.1.2: Identify key project stages

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 10

Identify project activities

 Each objective will have a number of discrete activities.

Estimate Activity Time

 The time to complete an activity is random.

Estimating Activity Cost

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 11

 Project activities are critical to the project being completed on schedule.

 Determine personnel needs (selection of project manager and team members)

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 12

 The major goal of selecting a project manager is:

 Inspires a Shared Vision

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 13

Define management style

 Autocratic: The manager makes decisions alone.

 To track progress— through periodic reporting system (monthly)

 Variance reporting tools,

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 14

 It is the simplest reporting tools.

PROJECT MANAGEMENT COMPILED BY ANIL SHRESTHA 15

 Obtain clients acceptance