PROJECT CYCLE MANAGEMENT

(PCM)

• Development by
European Union Commission 4. Financing

• Adaptation by
Doç. Dr. Mustafa Sarı, 3. Planning 5.
Implementat
Dr. Faruk Tekindağ ion

• Revision and Presentation by

2. Analysis 6. Evaluation
Prof. Dr. Ziya Yurttaş
Yrd. Doç. Dr. Tecer Atsan
Yrd. Doç. Dr. Atilla Keskin
1. Project Idea

1
Institutions Supporting the Presentation

2
Introduction
• Development is a process of improving the
quality of life of the people.
• All human activities are aimed at increasing the
quality of life.
• Development is a process that can be achieved
only through a proper “Project Cycle
Management”

3
Objective
The objective of this presentation is to provide an
opportunity for the participants to:
• Acquire the knowlege and talent to plan, execute
and evaluate deelopment projects in accordance
with internationally accepted quality creteria

4
PART I. DEFINITIONS
• Planning
• Project
• Project Cycle
• Project Cycle Management
• Logical Framework

5
1. Planning
Planning, in general, is a process
• to answer the questions of what, where, when,
why, how, for whom, by whom and at what
cost (7W,1H) for the accomplishment of an
objective and
• to record the answers in a systematic way.

6
2. Project

Project is a document in which the

answers to “7W,1H questions” in
connection with the accomplishment
of an objective is recorded in a
systematic way.

7
3. Project Cycle
A series of interconnected stages of activities that are necessary
for the accomplishment of an objective in an effective way

The stages are: 4. Financing

1. Project idea
3. Planning 5.
2. Situation anaylysis Implementat
ion
3. Planning
4. Financing 2. Situation
Analysis
6. Evaluation

5. Implementation
6. Evaluation 1. Project Idea

8
 4. Project Cycle Management – PCM
• a process of implementing certain rules and
principles for an effective execution of all
stages of the project cycle,
• developed as a reaction to classical approach
• based on “Logical Framework

9
 5. Logical Framework(LM)
LM is a method of analysis and a
way to present core information
about a project. It is intended to
• Provide consistency
• Reveal contradictions
• Facilitate efficiency in the
management of a project
10
PART II. 4.
Financing

PROJECT 3. Planning 5.
Implementatio
n
CYCLE
2. Situation 6. Evaluation
Analysis

1. Project
Idea

11
1. Project idea

• The emergence of a project idea is the first stage

of the project cycle.
• A project idea may emerge as a result of a need,
observation, consultation or existing of a grant in
an area.

12
2. Analysis
a process of collecting and evaluating the information related
to a project idea.
At this stage,
• related information is collected
• existing conditions are determined,
• Analysis of the partners, problems, objectives, and strategies
is made
• Project objectives are determined.

13
 H
3. Planning W W

Planning is a process to answer the 7W,1H W W

questions related to the accomplishment
of an objective and record the answers in W W
a systematic way W

At this stage
• The 7W,1H questions related to the
accomplishment of an objectives are answered
and
• The answers are recorded in a systematic way
to form a project document.

14
3.1. EU Creteria for Planning
EU creteria for planning have taken place
in the project evaluation forms as
follows:
1. Institutional capacity
2. Thematic relevance
3. Methodology
4. Cost effectiveness
5. Sustainability

15
3.2. Sustainability-1
• Maintaining the activities and the benefits of a project
through local dynamics after the project period is over and
the outside help and interventions are no longer available.

16
 3.3. Sustainability-2
• It is the ultimate and most important criterion for a project.
• It is the umbrella criterion depending all other criteria.
• In addition to the creteria mentioned above, the following criteria
need to be met to facilitate sustainability:
- Appropriate Technology
- Social, cultural and environmental sensibility
- Political support
- Ownership by the beneficiaries
17
4. Financing
• A process to obtain financial
resources to be used for the
project activities

18
5. Implementation
A process to
• put into practice the
answers of
the7W,1H questions
related to the
accomplishment of
an objective

Implementation of a Greenhouse Project

of UNDP and Ataturk University
19
6. Evaluation-1
Making a qualitative judgement
about something.
At this stage
• The results are compared
with the objectives to
determine the
- strengths and weaknesses
of the project activities and
- ideas to be taken into
consideration to improve
future implementations Final Evaluation
20
 6.1. Evaluation-2
• Periodic evaluation for
activity objectives
(outputs)
• Final evaluation for
project objectives
(outcomes)
• Impact evaluation for the
general objectives
(overall objectives) to
which the project
objectives are intended to
Contribute (impact) Impact assesment 21
PART III. PROJECT CYCLE MANAGEMENT
PCM

a process of implementing certain

rules and principles for an
effective execution of all stages of
the project cycle

22
1. Shortcomings of Clasical Aproach
• Inadequate analysis of existing situation
• Weak linkage between the objectives of the project and the
priorities of the clientele
• Weak linkage between the objectives and the Institution
• Ambiguity in strategic framework
• Inadequate consideration of risks
• Short term perspective
• Inadequate consideration of previous experiences
• Activity oriented rather than result oriented planning and
implementation
• Not objectively verifiable project outputs
• Inadequate project documents

23
2. The Functions of the Logical Framework
The most important aspects of the project is summarized in boxes
– The long term contribution of the Project (General Objectives)
– The objectives at the end of the project period (Project Objectives)
– Expectations from the project (Verifiable Indicators)
– The ways the project will realize the objectives (Activities)
– Risks for the project (Assumptions)
– Sources of verification (Verifications)
– The cost of the project (Cost)
– Required conditions to start the project (prerequisits)

24
3. Logical Framework Matrix
Objectiv Objective
ly Sources Assumptio
es
Veifiable of ns
Indicator verificat
General s ions
Objectiv
e
Project
Objectiv
es
Activity
Objectives
Outputs

Activitie Method Cost

s
Prerequi
site
25
 4. Stages of Logical Framework
Analysis
1. Situation Analysis – Determining the
existing conditions regarding the target
populaton and project.area.
2. Problem Analysis – Establishing the
cause and effect relationships and
illustrating the hierarchy of problems
(problem tree)
3. Stakeholder Analysis – Identification of
the people invoved in and affected by the
project and the opinions they would have
4. Analysis of Objectives – Establishing the
means-end relatinships.and illustrating
thehiararchy of objectives (Objective
tree)
5. Analysis of strategies – Selecting a
strategy to achieve a desired objective
Planning
6. Logical Framework – Presenting the
substance of a project under the
heading of objectives, indicators,
verification and assumptions
7. Work Plan – Indicating the name,
place, time, objective, method,
clientele, people in charge and the
cost of the activities to achieve an
objective
8. Budget –Listing the cost of different
items related to the activities in a
project..
26
4.1. Situation Analysis
Determining the existing conditions and problems regarding the target
populaton and project.area.

Titles for the Situation Analysis

• Geography
• Infrastructure • Cultural life
• Economy • Human and Social Capital
• Social life • Environment
• Health • Government Policy

27
4.1.2. Sample Problems (Beykent Case)
1. Unemployment
2. Inedequate infrastructure
3. Low education level
4. Faulty sewage system
5. No purification system in
the tire factory
6. No clean drinking water
7. Epidemic disease
8. Low income level
9. İgnorance of mothers on
child nutrition
10. Malnitrution for the children
11. Inedequate health clinics
12. Limited access to services
13. Inedequate vaccination
14. In the last one year child
mortality has increased %10
15. Infectious diseases increased
28
 4.1.3. Situation Analysis
Group Study-1

Now, as the members of the Beykent Development Association, in

gorups of 4 or 5, let us make a Stuation Analysis, and write a report
in one hour, visulizing the situation in Beykent, then make a
presentation
29
4.2. Problem Analysis
• To establish the hierarchy of problems in the
light of the cause and effect relationships to
find the focal problem

• To Illustrate the hierarchy of problems in a

problem tree to form a base for the
objectives

30
4.2.1. Problem Tree

EFFECTS

CAUSES

31
4.2.2. Sample Problems (Beykent Case)
1. Unemployment
2. Inedequate infrastructure
3. Low education level
4. Faulty sewage system
5. No purification system in
the tire factory
6. No clean drinking water
7. Epidemic disease
8. Low income level
9. İgnorance of mothers on
child nutrition
10. Malnitrution for the children
11. Inedequate health clinics
12. Limited access to services
13. Inedequate vaccination
14. In the last one year child
mortality has increased %10
15. Infectious diseases increased
32
 4.2.3. Problem Analysis
Group Study-2

Now, in groups of 4 or 5, let us make a Problem Analysis, form

a problem tree in one hour and then make a presentation
explaining the couse and effect relations.
33
 4.2.4. Problem Tree – Beykent Case
High level of
baby deaths
Infectious Epidemic EFFECTS
diseases diseases
EFFECTS

Inadequate Inadequate Limited access No clean

Baby to health drinking water
vaccination services
feeding

Ignorance Inadequate Low Income Faulty sewage No purificaton

of mothers health clinics level system system in the
on nutrition tire factory

COUSES
Low level Unemploymen Inadequate COUSES

education t infrastructure

34
4.3. Stakeholder Analysis (S.A)

a process
 To identify the people involved in and
effected by the project (Stakeholders)
 To determine the opinion of the stakeholders and
 To facilitate their contribution to the
project activities at all stages of the project cycle

35
4.3.1. Stakeholders
A- The owner of the project – Those who prepared the project
B- Partners – Those who make contributions and take responsibility
C- Target group – Those who benefit directly and from the project.

D- Other Stakeholders

1. Ultimate beneficiaries – Those who, benefit indirectly form the project.

2. Opponents – Those who suffer, due to the Project
3. Participants – Those who make financial, administrative and technical
contribution but do not take responsibility.

36
4.3.2. The Parties and the Subjects in S.A.

• Identification Info.
• Project Owner • Objectives and
• Partners their stakes
• Target Group • Strengths and
• Others Weaknesses
• Opinions

37
 4.3.3. Stakeholder Analysis
Group Study-3

Now, in a group of 4 or 5, let us make a Stakeholder Analysis and

Prepare a report in one hour and then make a presentation
38
 4.4. Objective Analysis

a process to

• Determine the objectives parallel to the problems

by stating the problems in positive terms and

• form an objective tree (target tree) in the light of

ends and means relationships

39
4.4.1. From Problem to Objective

.
Problem Objective

High rate of child deaths To

To reduce
reduce the
the rate
rate of
of child
child deaths
deaths

To reduce the rate of

High rate of infectious diseases
infectious diseased

40
4.4.1. Objective Tree
Turning negative conditions into positive in a certain time

. Overall Objective ENDS

Project
Objectives
Outputs
MEANS

Activitie
s

41
 4.4.2. Levels of Objectives
.

High level objective to which the

project Contributes
Overall Objectives

Sustainable benefits for the target

group
Project Objectives

The product of the activities

Outputs

Actions undertaken to realize

the project objectives Activities Means

42
4.5. Strategy Analysis
Strategy Analysis is a process to
• Determine the available resources and
limitations
• consider alternative ways to solve the
problems
• Eliminate the targets beyond available means
• Choose the proper strategy

43
4.5.2. Target and Strategy Analysis
Gruop Study-4

Now, in groups of 4 or 5, let us make a target and strategy analysis

and choose the proper strategy in the light of available resources
in one hour and then make a presentation

44
 4.5.3. Objective Tree -Beykent Case
To
To reduce
reduce the
the rate
rate of
of
Child
Child deaths
deaths

ENDS
To reduce the
rate of infections To recuce the
epidemics

To improve To increase To improve To provide

the nutrition the the access to clean drinking MEANS
for children vaccination health services water

Traninin
mothers on Improving Increasing Improving the Constructing a Purification
nutrition clininics the incomes sewage system system in the tire factory

45
 4.5.4. Strategy Analysis-Beykent Case

To
To reduce
reduce the
the rate
rate of
of ets
. Child
Child deaths
deaths ed
ta rg
mi n at
Eli

g y
To reduce the t e To recuce the
rate of infections t ra epidemics
S
sen
o o
Ch
To improve To increase To improve To provide clean
the nutrition the the access to drinking water
for children vaccination health services

Traninin
mothers on Improving Increasing Improving the Constructing a Purification
nutrition clininics the incomes sewage system system in the tire factory

46
 4.6. Logical Framework Matrix
a method of presenting the results of target
analysis in a systemastic and logical way to
provide consistency and avoid contradictions
It shows;
• The causal relationships between different
levels of objectives,
• Success indicators
• Sources of verification
• Assumptions
47
 4.6.1. Logical Framework Matrix
Objectives Verifyable
Sources of Assumption
Indicators verification s

Overall
Objective
Project
Objectives

Outputs

Activities Means Cost

Ön-
Precondi
koşullar
tion
48
 4.6.2. Building Order for the Logframe

Objectives Verifiabl Sources Assumpti

e of ons
Indicato Verificati
Overall
Objective 1 rs 8 on 9
Project
Objectives 2 10 11 7
Output
s
3 12 13 6
activiti
es
4 Means Cost 5
Pre-conditions

49
 4.6.4. From Strategy Analysis to Objectives

. Bebek ve Çocuk Ölüm Oranlarının Azaltılması

Overall Objectives

Bebek
Bebek ve
ve çocuklarda
çocuklarda görülen
görülen enfeksiyon
enfeksiyon oranlarının
oranlarının
azaltılması
azaltılması
Project Objectives

Bebeklerin
Bebeklerin ve
ve Çocukların
Çocukların Beslenme
Beslenme Durumu
Durumu İyileştirildi
İyileştirildi Aşılanmış
Aşılanmış Bebek
Bebek ve
ve Çocuk
Çocuk Sayısı
Sayısı
Arttırıldı
Arttırıldı
Outputs

Anneler
Anneler Beslenme
Beslenme Konusunda
Konusunda Bilgilendirilmesi
Bilgilendirilmesi
Sağlık
Sağlık Ocağı
Ocağı İyileştirilmesi
İyileştirilmesi
Activities

50
 4.6.5. Assumptions

• Assumptions are the external factors beyond

control that may affect the the project’s
implementation and and long term sustainability.

• These conditions has to be met for the project to

succeed

51
 4.6.5.2. Assesment of Assumptions
Is the extermal Factor
important?

Yes No

Wlll it be realized? Do not include in the

logframe
Almost certainly Do not include in the
logframe
Likely Include as an assumption

Unlikely Is it possible to redesign

the project?

yes No
Redisign the project
t
Project is not feasable

52
4.6.5.4. Vertical Logic
Verifiable
Intervention Indicators Sources of
Logic Verificatio Assumptio
n ns

Overall Objective

Project Objective

Activity Objectives-
Outputs

Activities Means Cost

‘... Pre-
Pls. Next Slide conditions

53
4.6.5.5. Vertical Logic
• Once the pre-conditions are met, the activities can start up;
• Once the activities have been carried out, and if the assumptions
at this level hold true, results will be achieved;
• Once these results and the assumptions at this level are fulfilled,
the project purpose will be achieved;
• Once the purpose has been achieved and the assumptions at this
level are fulfilled, contribution to the achievement of the overall
objectives will have been made by the project.
54
 4.6.5. Indicators
• Indicators are the operational descriptions of the
objectives. They are the statements for objectives in
terms of quantitiy, quality, time and place.

• They need to be objectively verifiable

• They are the statements of

- Outputs for the activit objectives
- Outcome for the projec objectives and
- Impact for the overall objectives

55
4.6.5.1. Criteria for Indicators
Indicators must be “SMART”
SPECIFIC
MEASURABLE
AVAILABLE
RELAVANT
TIME BOUND & COST EFFECTIVE

56
4.6.6.1. Sources of Verifications

Questionaires
Cost

Interviews

Statistics
Repots
Records

complexity

57
4.6.7.2. Logical Framework – an Example
Objectives Doğrulanabilir Göstergeler Doğrulama Kaynakları Varsayımlar
Overall Objective
Improving the quality of life in20% increse in the income level Impacat analysis
X region in X region in two years

Proje Amacı-1
Improving the horticultural At the end of the project, the Records of the Ministry of Enough demand and price level
production in terms of quality Horticultue land will reach to Atriculture on land use and for the additional production.
and productivity in X 4000 hectars. the productivity production.
will increase by 20%.

Output
Output 1: Increase in lettuce 20 tons increase in lettuce and Random sampling studies and Farmers adopt new practices
production, 60 tons increase in tomato environmental impact analysis. and varieties.
Out put 2. Production of new production in X by the year …..
tomato varieties.

Activities Main inputs Cost

Activity 1.1. Introduction of . 25 men/month consultancy To be computed It is possible fo find seeds
new production techniques in . 20 field studies suitable for the area
lettuce and varieties in tomato . Training of 66 farmers
production.

No change in the policy of the

Ministry
 4.6.8. Logical Framework Matrix
Group Study-5

Now, in groups of 4 or 5, let us build an LFM exluding the

activities in one hour and then make a presentation
59
4.7. Plan of Work

A document in which;
• The 7W,1H questions are answered in detail
• Logical Framework approach is maintained.
• The order, time, and priorities of the activities are
recorded.
• Management and control duties and responsibilities are
designated

60
4.7.1. The Order of Activities
Output of the activities
k

Activity 1.1..............
Activity 1.2..............
Activity 1.3..............
Activity 2.1..............
Activity 2.2..............
Activity 3.1..............
Activity 3.2..............
Activity 3.3..............
61
 4.7.2. A Calender of Work (Activity Schedule)
Activity The name of the activity Person or Months
No Institution in
10 11 12
Charge 1 2 3 4 5 6 7 8 9

F 1.1. Preparing brochurs on fodder crops A.H., M.S., X X

F 1.2. Selection of a demonstration field H.Y., F.Y., X X

F 2.1. Seminars for farmers T.A., A.K., XX X X

… To develope and update a web-page …….. X X X X X X X XXXX

F 3.3. Organizing a field day and a trip S.S., I.A. XX

62
… Interim activity report ….. X
4.8. Budget

• A document that shows

the amount of financial Büyçe

resorce to be allocated
Bütçe
Salaries 50005500
Bütçe
Allowances 12501750
Salaries 50005500
Vehicle Op.
Allowances 37504250
12501750
Maaşlar 50005500
Office 750 750

for certain activities.

Vehicle Op.
Harcırahlar 12501750 37504250
Tel/Fax 750 400 400
AraçOffice 37504250 750
Seeds
Tel/Fax 400 850
4001100
Ofis 750 750
Seeds Fertiliser 85023003100
Tel/Faks 400 4001100
TohumFertiliser 85023003100
1100
Fertiliser 23003100

63
4.8.1. A Budget

# Budget Items External Local source Toplam

Source (EU) (EU)
(EU)
1 Personell (F4.4) 4800 4800
2 Consultants (F4.4) 2000 2000
3 Field Work (F1.1, F1.2, F1.3, F2.4, F3.5) 2850 2850
4 Out of City Trips (F1.1, F2.1) 1800 1800
5 Traning Material (F2.2, F3.5) 6100 6100
6 Training Organization (F2.3, F2.4, F3.2, F3.3) 3275 3275
7 Equipment (F4.3) 4700 12500 17200
8 Ofis Expenditures (F4.2) 700 350 1050
9 Project Promotion (F4.1) 500 500
10 Overhead Expenditure 600 600 1200
11 Total 27325 13450 40775

64
4.8.2. Activity Planning and Budget Making
Group Study-6

Now, in groups of 4 or 5, let us plan the activities, determine

the costs and make a budget in one hour and then make a
presentation
65
PART IV.

PROJECT FORMATS

66
1. EU Project Format Titles-1
• 1. Description
• 1.1 Title
• 1.2 Location(s)
• 1.3 Amount requested from CFCU
• 1.4 Summary
• 1.5 Objectives
• 1.6 Justification
• 1.7 Detailed description of activities
• 1.8 Methodology
• 1.9 Duration and action plan
67
1. EU Project Format Titles-2
• 2. Expected results
• 2.1. Expected impact on target groups
• 2.2. Publications and other outputs
• 2.3. Multiplier effects
• 2.4 Short- and long-term impact
(Sustainability)
• 3. Budget for the action
• 4. Expected sources of funding
68
1.3. UNDP  Project summary
 Subject
 Justification
Project Format  Strategy
 Relavance to the Mission of UNDP
Titles  Project Team and Partners
 Participation of the Stakeholders
 Sustainability
Info. About the Project Owner
 Logical Framework
 Plan of Action and the Calender of Activities
 Budget
 Enclosures

69
PART V. MONITORING EVALUATION

• Monitoring and evaluation need to be carried out

at every stage of the project cycle.

70
1. Evaluation of the Project Document

• The evaluation in question here is the

evaluation of the project document to find out
to what degree it conforms to the required
standards.

• Project documents with points obove certain

level are funded.

71
2. EU Creteria for the Evaluation of the
Project Document
Quality Criteria Max.
Points
1. Institutional Capacity 20
2. Thematic Relevance 25
3. Methodology 30
4. Sustainability 15

5. Budget and Financial Viability 10

Maximum Total 100

72
Some Web Pages

• UNDP-GEF/SGP • EU Delegation in TR
www.gefsgp.net www.deltur.cec.eu.int
• STGP
www.stgp.org • PCM Handbook and
Manual
http://europe.eu.int/comm/europeaid/eva
State Planning Org.
www.dpt.gov.tr

73
Thanks

74