Project Cycle

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Project Cycle

Project planning is done in stages, however, the number of stages differ depending on the
planner. This essay shall present a five-staged project planning cycle, as espoused by Jones
(2005). The way in which projects are planned and carried out follows a sequence that is known
as the project cycle. A project cycle is a process and is continuous. The project cycle describes
its phases and explains its role in project management (Conyers and Hills, 1984). The cycle starts
with identification of an idea and develops that idea into a working plan that can be implemented
and evaluated. It also provides a structure to ensure that stakeholders are consulted and relevant
information is available, so that informed decisions can be made at key stages in the life of the
project (Jones, 2005). Figure 1 shows a five-stage project life cycle.

Figure 1: The Project Life Cycle

Project
Identification

Project Design or
Project evaluation Formulation

Project implementation Project Appraisal

Source: Jones (2005)

As project should have a specific time frame. The process of planning and managing projects
follows a logical, continuous cycle. Each phase of the project leads to the next.
 The identify stage (problem definition) includes a needs assessment process to determine
the needs and problems in a community.

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 The design phase (project formulation) includes the actual planning and design of a
project.
 Project Appraisal stage: establishing whether it is worthy to conduct the project
 The implement stage refers to the implementation of the project, whether it is a single-
year or multi-year implementation period.
 The evaluation of project results occurs at the end of a project and involves determining
whether the project’s goal and objectives were achieved. The evaluation stage then leads
to the identification of additional or persisting problems, allowing the cycle to begin
again.
 Project monitoring occurs throughout all stages allowing for small adjustments in the
project’s planning, design, and implementation in order to ensure the project’s success.

Project Manager in the Cycle


As pointed out by the Overseas Development Administration (ODA, 1995), supported by
Nicholas (2003), all projects require some planning and effective management to be successful.
This brings us to the need for a project manager, who is an individual or institution given the
formal authority to plan, direct, organise and control the project from the start to finish. Such an
individual should provide effective leadership given the project environment, which is typically
dynamic and highly unpredictable. Therefore, the project manger has to develop an ability to
understand the characteristics of the environment, analyse it and then develop coherent
management strategies for dealing with the environment so as to enhance the chances of project
success. In addition to that, the project manager must use diplomacy, worker participation, and
conflict resolution skills to be an effective leader. The ability to achieve teamwork becomes
crucial to the achievement of project objectives. The argument is, over and above understanding
that projects consists of a series of interrelated activities, which are problem solving, time phased
as well as being cost-bound, there are other intervening factors related to how the project is
managed and the general environment unique to that project.

According to Burke (2002), a project manager is the individual responsible for planning the
project and taking the necessary precautions. For any project to be successful there has to be a
good project manager who is able to provide leadership and bring together different teams to
work towards a common objective. In addition to being able to manage people and budgets the
project manager must be able to identify potential risks and develop back up plans, effectively

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communicate with all stakeholders and ensure quality that meets the expectations of
stakeholders. Wong (2008) also pointed out that the project manager performs the basic
management functions (planning, organising, leading, and controlling). A project manager is
generally expected to be the projects’ leader who needs to motivate and inspire people working
on the project.

Stages of the Project Planning Cycle and the Precautions that Project Managers Should
Take

Project Identification Stage


The initial stage is termed, project identification (or preparation) and within that are a number of
sub stages. Defining the development issue or problem. A project is an intervention that
addresses a problem. Logically then, the first step is to identify the problem, but in reality cutting
a problem down to practical dimensions is often difficult.

There are a number of ways of identifying a project, but the bottom line is the initial ideas that
emerge from identification have to be developed into a coherent form that makes sense as a
project (Wong, 2008). In the case of the Plumtree-Mutare Highway, ZINARA considered the
benefits that the project was going to bring, which included low transport costs to the public,
reduction in accidents, less vehicle operating expenses and easy access to communities. There
were also indirect benefits include a possibility of increase in trade and attraction of industries.
Road construction ensures easy access to a community. Many transport operators would be able
to service the route without much difficulty. Good road networks results in less accidents and
this reduces carnage. It is important to note that most accidents have occurred in poorly
constructed roads and the speedy completion of the Plumtree-Mutare Highway was due to the
need to reduce the number accidents long the highway, which links the major cities in
Zimbabwe, that is, Harare, Bulawayo, Gweru and Mutare as well as liking with Botswana and
Mozambique.

Project Design Stage


The design stage utilises the data gathered, to specify the project objectives, activities, outputs,
and inputs. Thus, this should be carried out to a sufficient level of detail to allow the estimation

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of technical, social, and institutional parameters, and the preparation of a feasibility study with
an assessment of cost and benefits. The roles of the project manager is to conduct the technical,
financial and organisational deigns of the project. In terms of the organisational design, ZINARA
identified a private partner (Group 5) and formed a joint venture company (Infralink) that was
responsible for the implementation. The project manager is also responsible for coming up with
the implementation plans.
Technical Design (log frame)
Organisational design

Project Appraisal Stage


Project appraisal is one of the most important stages in the life cycle of a project. Project
appraisal is a critical step undertaken before a project is finally selected and activated. Project
appraisal is a critical review of every aspect of a project plan by an independent team of
specialist to establish whether the proposed project is sound and appropriate for resources to be
committed to it. Gittinger (1982) defines appraisal as an analysis of a proposed investment to
determine its merit and acceptability in accordance with established decision criteria. This agrees
with the online business dictionary that defines project appraisal as a systematic and
comprehensive review of the economic, environmental, financial, social, technical and other
such aspects of a project to determine if it will meet its objectives (Krahn, 2006). It can also be
viewed as an assessment of the viability of the proposed long-term investments in terms of
shareholder wealth. Types of appraisal are technical, institutional, financial, economic, and
environmental.

It is apparent from the foregoing that project appraisal is an analytic, systematic integrated, and
comprehensive exercise that seeks to determine whether or not the project is worth implementing
based on decision criteria and is only worthwhile for long term projects. Project appraisal is an
important tool in decision-making and lays the foundation for delivery and evaluation. Project
appraisal can be described as the process of assessing and questioning proposals before resources
are committed. It is a stage in the project cycle where the analyst may reject or accept a project
or suggest some alterations to the plans and designs of the project. It is a means by which
partnerships can choose the best projects to help them achieve what they want. Project appraisal

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can also be described as an exercise by which a lending financial institution makes an
independent and objective assessment of various aspects of an investment proposition to arrive at
the financing decision (Lester, 2000).

Appraisal exercises are basically aimed at determining the viability of a project and sometimes,
also in reshaping the project so as to upgrade its viability. Ultimately project appraisal is aimed
at stopping bad projects, preventing good projects from being destroyed, determining if
components of projects are consistent, assessing the sources and magnitudes of risks and
determining how to reduce risks and efficiently share risks (Nancy, 2004). During project
appraisal, the project managers engage in the comprehensive analysis of a wide range of data,
judgements and assumptions, all of which need adequate evidence. This helps ensure that
projects selected for funding will help a partnership achieve its objectives for its area and are
deliverable. Appraisal helps ensure that projects will be properly managed, by ensuring
appropriate financial and monitoring systems are in place, that there are contingency plans to
deal with risks and setting milestones against which progress can be judged.

The project manager is supposed to come up with technical appraisals, institutional appraisal
(interrogating the institutional capacity to implement the project), and financial appraisal. The
financial appraisal determines the financial viability for sound implementation and efficient
operation. It aims at investigating the financial aspects of the project, financial soundness,
efficient operation, cost of production, return on investment, prospects of marketing,
profitability, effective, effective controls, budgeting and pricing. Financial appraisal is concerned
about measures of project worthy. Measures of project worthy are calculated to assess the
viability of a project. Ways for analysing project worthiness include the payback period, net
presents value (NPV), internal rate of return (IRR) and benefit-cost ratio (BCR).

The project manager is also supposed to conduct risk analysis. A risk is a potential and
unforeseen trouble spot that may affect the project. Possible project risks include financial
limitations, personnel constraints, budgetary constraints, and standard constraints. A project
manager has a task of managing specific project risks. Risk identification consists of determining
which risks are likely to affect the project and documenting the characteristics of each (Wong,

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2008). Once risks are identified, the project manager has to develop a plan of how each problem
will be addressed. It is also vital to note that risk identification is not a one-time event and should
be performed on a regular basis throughout the project. Risk identification should address both
internal and external risks. Internal risks are things that the project team can control or influence,
such as the performance of contractors, and material wastage. External risks are things beyond
the control or influence of the project team, such as changes in the exchange rate, new
government legislation, and bad weather (Wong, 2008).

An economic or social analysis looks at the project from the viewpoint of the whole economy,
asking whether the latter will show benefits sufficiently greater than project costs to justify
investment in it. The economic benefits considered include increases in wages, increase in
output, employment creation, changes in asset ownership leading to improvement in the
livelihood, and mobilisation of latent resources. Economic analysis of national projects like the
Plumtree-Mutare Highways becomes important because there will be a need to look at the impact
of a project on the whole economy. Financial analysis may reveal that a project is not acceptable,
but government can decide to go ahead with the project because of economic and social benefits.

Project Implementation Stage


Implementation refers to the development of activities before the project is in full operation. A
number of activities are to be conducted to ensure the launch of the project. These activities are
Implementation refers to the development of activities before the project is in full operation. A
number of activities are to be conducted to ensure the launch of the project. These activities are
specified in the work-breakdown structure (WBS). According to Wright (1998), a WBS contains
the smallest work components of a project and the activities should have a clear start and end
dates. A WBS provides a scope for project costing and is an entry point into any project.

Form the WBS, a network diagram can be drawn. Network analysis is a technique for modelling
the logic of the project with the aid of a network. According to Awani (1983), a network is a
graphical representation of a project plan, showing interrelationships of the various activities.
Wright (1998) further argues that networks provide a means for dealing with the ‘what is to be

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done’ aspect of a project in a thorough manner. Network analysis makes it possible to set
realistic target dates and these act as performance indicators.

Time Management During Project Implementation


Time is a very important resource in effective management and in some cases it can be referred
to as a constraint. Time is also a measure of effective success. Successful effective management
can be defined as having achieved the effective objectives within time and cost, at the desired
performance or technology level and while utilizing assigned resources effectively and
efficiently. Time is one of the three basic elements in operations. The other two basic elements
are tasks and resources. It is extremely critical for PROJECT managers to manage their time
effectively. If the PROJECT manager cannot control time, then he/she will control nothing else
in the business. Time is a resource, which when lost or misplaced is gone forever. Time is often
seen as a constraint and effective time management principles must be employed to make it a
resource. Techniques for making sure that time becomes a resource were developed. These
techniques include the critical path method (CPM) or network analysis and Gantt Charts. In
addition, there are some guidelines that effective managers can use when managing time.
Effective managers should ensure the following.
1. Strive to complete work within allocated deadlines and to follow schedule
2. Try to avoid interruptions or time robbers. Time robbers include poorly done jobs (they
need to be redone), ineffective communication, failure to delegate, lack of sufficient
clerical support, delayed decisions, unreliable subcontractors, lack of organisation and
poor lead time.
3. Managers should delegate and need to screen out minor duties
4. There is need to prioritize and CPM should be used
5. Meetings among team members are vital. There is need to manage time during meetings
and trivial items should not be discussed. There is a need to come up with agenda.

Project managers are expected to organise resources to complete a project on time, on budget and
within specification. They provide direction, coordination, and integration to the project team
Types of appraisal are technical, institutional, financial, economic, and environmental. and are
responsible for performance. When things go wrong, the project manager’s job is to get the

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project back on track by working out ways to solve problems and serving as peacemaker when
tensions arise (Krahn, 2006). For instance, during the construction of the Plumtree-Mutare
Highway, there were several problems and at one time, the contractor had to stop work over
payments. ZINARA, as the project manager, was responsible for addressing the problems. In
addition, Project Management Institute (2008) posits that, depending on the nature of the project,
there are a number of different groups outside the organisation that influence the success of the
project. To be effective, a project manager must understand how these groups can affect the
project and develop methods for managing the relationship.

The project manager is also supposed to engage in communication. Burke (2002) argued that
project communication management is about how communication is carried out during the
course of the project. Good communication ensures that all stakeholders are regularly kept
informed about progress and problems. Project communication management is made up of
communication planning (determining the information and communication needs of the
stakeholders: who needs what information, when will they need it, and how will it be given to
them), and information distribution (making needed information available to project stakeholders
in an accessible and timely manner). Other aspects of project communication are performance
reporting (collecting and disseminating performance information. This includes status reporting,
progress measurement and forecasting), and project closure, that is, generating, gathering, and
disseminating information to formalise phase or project completion (Wong, 2008). During the
implementation of stage of the Plumtree-Mutare Highway, ZINARA communicated with the
stakeholders over the developments that were happenings. There were advertisements in the
newspapers, radios and televisions.

Project managers also have the direct responsibility over quality. According to Nancy (2004), it
is of no use completing a project within the set time and budget if the final product is of poor
quality. The project manager has to ensure that the final product meets the quality expectations
of the stakeholders. A project manager ensures that quality expectations of stakeholders are met
through quality planning, quality assurance, and quality control (Wong, 2008). Quality planning
is identifying what quality standards are relevant to the project and determining how to meet
them. Quality assurance refers to evaluating overall project performance on a regular basis to

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provide confidence that the project will satisfy the relevant quality standards. Finally, Quality
Control is monitoring specific project results to determine if they comply with relevant quality
standards and identifying ways to remove causes of poor performance (Wong, 2008).

Project Evaluation Stage


Evaluation is conducted to establish whether the project is attaining the intended objectives.
Evaluation is the last stage in the project life cycle, but in practice, there is a need for evaluation
at each stage of the project life cycle. These days, emphasis is on management for results. Thus,
in order for a project to produce desired results, there is need for what Kusek and Rist (2004)
called, result-based monitoring, and evaluation (M&E). This is supposed to provide feedback
into the project system.

Kusek and Rist (2004) went on to explain that, results-based M&E differs from the traditional
implementation-focused M&E in that it moves beyond an emphasis on inputs to a greater focus
on outcomes and impacts. Such an exercise, provide the project management team with
necessary information to make informed decisions which will stir the project in the right
direction. Monitoring can be defined as a continuous function that uses the systematic collection
of data on specified indicators to provide management and the main stakeholders of an ongoing
development intervention with indications of the extent of progress and achievement of
objectives and progress in the use of allocated funds. On the other hand, evaluation is the
systematic and objective assessment of an ongoing or completed project, including its design,
implementation, and results. In essence, project monitoring and evaluation have complementary
roles, the main aim is to determine the relevance and fulfilment of objectives, development
efficiency, effectiveness, impact, and sustainability. An evaluation should provide information
that is credible and useful, enabling the incorporation of lessons learnt into the decision-making
process of both recipients and financiers.

Conclusion
Jones (2005) pointed out a project is an assignment/task/job that has to be undertaken and
completed within a set time, budget, resources and performance specifications designed to meet
the needs of stakeholder and beneficiaries. Project Management requires the use of knowledge,

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skills, tools, and techniques to plan and implement activities to meet or exceed stakeholder needs
and expectations from a project. All these tasks are duties of project managers (Burke, 2002). To
create a successful project, a project manager must consider scope, time, and cost and balance
these three often-competing goals (Project Management Institute, 2007). A project manager must
consider the scope: What work will be done as part of the project? What unique product, service,
or result does the customer or sponsor expect from the project? In addition, time and costs are
essential. Other people focus on the quadruple constraint, which adds quality as a fourth
constraint. One has to ask how good does the quality of the products or services need to be?
What do we need to do to satisfy the customer? Project failure or success is dependent on the
project planning process.

References

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Management Practices to Project Success,Project London; Management Institute.

Burke, E. (2002), Project Portfolio Management,Houston; Project Management Institute


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Conyers, D. and Hills, P. (1984), An Introduction to Development Planning in the Third World,
Chichester; John Wiley and Sons.

Gittinger, J.P. (1982), Economic Analysis of Agricultural Projects, Second Edition,London;


Johns Hopkins Press.

Goodman, L.J. (1988), Project Planning and Management: An Integrated System for Improving
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Jones, M.P. (2005), Practical Project Management,New York; Dorset House.

Kirkpatrick, C. (1991), Project Rehabilitation in Developing Countries,London; Routledge.

Krahn, J. (2006), Effective Project Leadership: A Combination of Project Manager Skills and
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Kusek, J.Z. and Rist, R.C. (2004), Ten Steps to a Results-based Monitoring and Evaluation
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Lester, A. (2000), Project Planning and Control,Third Edition, London; Butterwortth-Heineman.

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Developing Countries, London; HMSO.
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