CHAPTER 7: PROJECT

MANAGEMENT/IMPLEMENTATION

7.1. Project planning

▪ Project planning can be defined as preparing a predetermined flow of action within a pre-assumed environment

▪ Project planning need is much greater for project work than for normal operations.

• Project planning provides a basis for organizing the work on the project and allocating responsibilities to individuals.

• It is a means of communication and coordination between all those involved in the project.

• It induces people to look ahead.

• It instills a sense of urgency and time consciousness.

• It establishes the basis for monitoring and control

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 .
• A comprehensive project planning covers
the following areas (Chandra, 2006; I 2007;
Pearce and Robinson, 2001):
a) Planning the project work- the activities relating to the
project must be spelt out in detail. They should be properly
scheduled and sequenced.
b) Planning the manpower and organization- the manpower
required for the project must be estimated and the
responsibility for carrying out the project work must be
allocated.
c) Planning the money- the expenditure of money in a time-
phased manner
must be budgeted.
d) Planning the information system- the information
required for monitoring the project must be defined.

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 7.2. Project objectives and policies
• The focus in the process of project planning is on giving answers to
questions like who does, what, and when.

• The objectives & policies guiding the project planning exercise

must be articulated before doing such operational planning.

• Primarily, the following questions should be adequately answered:

– What are the technical & performance objectives?

– What are the time & cost goals?

– To what extent should the work be given to outside contractors?
– How many contractors should be employed?
– What should be the terms of contract?

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 .
• Well-defined objectives & policies serve as the

framework for the decisions to be made by the

project manager (PM).

– The PM has to seek a compromise between the conflicting

goals of technical performance, cost standards, and time

targets throughout the life of the project.

– A clear articulation of the priorities of management

will enable the project manager to take expeditious

actions
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 7.3. Work breakdown structure (wbs)
• WBS is an important concept that the project analyst needs
to comprehend as well as use in the process of implementation
planning.

• Represents a systematic & logical approach of breaking down

the project as a whole into its component parts.

– WBS is constructed by dividing the project into its major parts.

– Each of these major parts are further divided into sub-parts.

– The process will continue until a breakdown is done in terms of

manageable units of work for which responsibility can be
defined.

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 Work breakdown structure (WBS) enhances :
– Effectiveness of planning by dividing the work into manageable
elements that can be planned, budgeted, and controlled.

– Assignment of responsibility for work elements to project

personnel & outside agencies.

– Development of control & information system.

• The project organization formally represents how the project

personnel & outside agencies are going to work.

– WBS defines works to be done in a detailed manner.

• To assign responsibility for tasks, WBS has to be integrated

with the project’s organization structure
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 7.4 The process of project planning
The project plan includes:

1. Environmental analysis (Internal , External & Competitive

environment)

2. The objectives & scope are defined

3. Develop project plan ( outlining the activities, tasks, & timeframe)

4. Develop resource plan

✓Types of resources ( labor, equipment & materials)

✓Total quantities of each resource type

✓Roles , responsibilities & skill-sets of all human resources

✓Items, & Specifications of all equipment resource

✓Items & quantities of material resource

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 5. Developing Financial plan
• A financial plan is prepared to identify the quantity of money required for each stage in the project
the total cost of labor ,equipment & materials is quantified and an expense schedule is defined
which provides the project manager with an understanding of the forecast spending vs. the actual
spending throughout the project

6. Develop quality plan

• Meeting the quality expectation of the customer is critical to the success of the project .To ensure
that the quality expectations are clearly defined and can reasonably be achieved, a quality plan
documented the quality plan Defines what quality means in terms of this project

• Lists clear & unambiguous quality targets for each deliverable. Each quality target provides a set of
criteria & standards which must be achieved to meet the expectation of the customer

• Outlines a plan of activities which will assure the customer that the quality targets will be met (i.e. a
quality assurance plan )

• Identifies the techniques used to control the actual level of quality of each deliverable as it is built
(i.e. a quality control plan)

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 7. Develop risk plan
• The foreseeable project risks are then documented with in
a risk plan and a set of action to be taken formulated to
both prevent each risk from occurring & reduce the impact
of the risk should it eventuate, developing a clear risk plan
is an important activity within the planning phase as it is
necessary to mitigate all critical project risk prior to
entering the execution phase of the project

• Avoid, walk away from the cliff

• Mitigate/reduce

• Transfer

• Accept
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 8. Develop communication plan
• The communication plan identifies the types of information to be distributed, the

methods of distributing information to the stakeholders, the frequency of

distributing & responsibility of each person in the project team for distributing

information regularly to stakeholders

9. Develop procurement plan

• The procurement plan provides a detailed description of the products ( i.e goods

& services) to be procured from suppliers

10. Monitoring ,controlling ,evaluation & repoting

• Monitoring is collection, recording, and reporting of information

• Control uses monitored information to align actual performance with the
plan

• Monitoring is a continuous process that aims primarily to provide project

management and give the main stakeholders early indications of progress

10/29/2022 or lack of progress towards achieving project

Instructor: Dr. Dagnu L. objectives. 10
 . Purpose of control
Purpose is to correct errors, not punish the guilty
Be careful not emphasize short-run results at the
expense of long-run objectives

Evaluation is a time-bound exercise that attempts to assess the

relevance, performance and success of current or completed
projects, systematically and objectives.
• A project evaluation appraises the progress and performance
relative to the project’s initial or revised plan.

• Also appraises project against goals and objectives set for it

during selection process.

• Projects should be evaluated at a number of crucial points.

• Purpose is to improve process of carrying out project.

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 .
• Evaluation Criteria
• Original criteria for selecting and funding project
• Success to date
• Business/Direct Success
• Future Potential
• Contribution to Organization’s Goals
• Contribution to Team Member Objectives
Measurement
• Measuring performance against planned budgets and schedules
straightforward

11. Project closing plan

• A project , like any other event, must have a full stop.
The end of a project can be planned.
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 7.5. Elements of Project Planning(alternatives)

• Overview
• brief description of project
• deliverables
• milestones
• expected profitability and competitive impact
• Objectives
• detailed description of project’s deliverables
• project mission statement
• General approach
• technical and managerial approaches
• relationship to other projects
• deviations from standard practices
• Contractual aspects
• agreements with clients and third parties
• reporting requirements
• technical specifications
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 Cont’d
• Evaluation methods
• evaluation procedures and standards
• procedures for monitoring, collecting, and storing
data on project performance
• Potential problems
✓ list of likely potential problems

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 7.6. Tools of implementing plan

• Effective & balanced timing of the delivery of various input

requirements must be established by accurate project
scheduling.

• There are different tools used for implementation

planning (scheduling).

• Commonly used tools of planning/scheduling:

– Bar Chart

– Network Techniques

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 1. Bar chart/Gantt chart
• The oldest formal planning tool: simple but popular.

• It is also called the multiple activity chart.

– Divides project implementation into time phased activities & shows the
duration of each activity.

– A pictorial device in which the activities are represented by horizontal

bars on the time axis.

• The Bar Chart exhibits the following features:

– The left-hand end of the bar shows the beginning time and the right-
hand end the ending time.

– Length of the bar indicates duration of the activity.

– Manpower required for the activity is shown by a number on the bar

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 Bar chart/Gantt chart
Activities Manpower Time in weeks from the starting of a project
required 10 20 30 40 50 60 70 80
Company 3
formation
Financial 2
planning
Organization 5
al build up
Technology 4
acquisition &
transfer
Acquisition 2
of land

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 .
• The implementation plans (or schedule) normally
prepared in 3 steps:

1. Determine the logical sequence of events in implementation.

2. Analyze how specific tasks are to be undertaken.

3. Analyze the work content of each sub-task to determine how much time it takes to complete
individual sub-tasks.

The description of each task should include the following items:

▪ Work to be done

▪ Resources needed

▪ Time required to complete the task

▪ Responsibility for the task

▪ Information inputs required for the task

▪ Results to be produced

10/29/2022 ▪ Interrelationships with other activities

Instructor: Dr. Dagnu L. 18
 .
• Advantages of the Bar Chart:

– It is simple to understand

– It can be used to show progress

– It can be used for manpower planning

The bar chart disadvantages,

▪ It cannot show the interrelationships among activities on large

(and complex) projects.

▪ There may be a physical limit to the size of the bar chart (this may
limit the size of the project that can be planned with this
technique).

▪ It cannot easily cope with frequent changes or upgrading.

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 2. Network techniques

• More sophisticated than the traditional bar chart.

• Represent the activities, events, and their

interrelationships by a network diagram.

▪ Network diagram is also called an arrow diagram.

The two common types are:

1. Critical path method (CPM)

2. Program Evaluation and Review
Technique (PERT)
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 1. Critical path method (CPM)

▪ CPM is used where the project term

regards the time estimates for task
completion as being very sound.
▪ Deterministic task times
▪ Activity-on-node network
construction
▪ Repetitive nature of jobs
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 Program evaluation and Review Technique
(PERT)

▪ PERT makes an attempt to apply rational

scheduling techniques to complex project.
▪ Multiple task time estimates (pessimistic,
most likely and optimistic
▪ Activity-on-arrow network construction
▪ Non-repetitive jobs (R & D work)

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 .
▪ Use of nodes and arrows

Arrows An arrow leads from tail to head directionally

 Indicate ACTIVITY, a time consuming effort that is required to

perform a part of the work.

Nodes  A node is represented by a circle

- Indicate EVENT, a point in time where one or more activities start

and/or finish.

• Activity

– A task or a certain amount of work required in the project

– Requires time to complete

– Represented by an arrow

• Dummy Activity

– Indicates only precedence relationships

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– Does not require any time or effort
 CPM calculation
• Path
• A connected sequence of activities leading from the
starting event to the ending event

• Critical Path
• The longest path (time); determines the project
duration

• Critical Activities
• All of the activities that make up the critical path

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Project Network for House

3
Lay Dummy
foundation

2 0 Build Finish
house work
3 1
1 2 4 3
6 1
7
Design house Order and
and obtain receive 1 1
financing materials Select Select
paint carpet

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Example- A simple network
• List of four activities for developing a simple
product:

Activity Description Immediate

predecessors
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C

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Sequence of activities
• Project can start work on activities A and B anytime,
since neither of these activities depends upon the
completion of prior activities.

• Activity C cannot be started until activity B has been

completed

• Activity D cannot be started until both activities A

and C have been completed.

• The graphical representation (next slide) is referred

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to as the PERT/CPM network
 Network of Four Activities
Network of Four Activities
•. Arcs indicate project activities

A D
1 3 4

B C

Nodes correspond to the beginning

and ending of activities

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28
.

• Network techniques are superior tools for

implementation planning.
– More complicated than the traditional bar chart

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 Advantages of Network Techniques
• They can effectively handle interrelationships among project activities.

– They identify the activities that are critical to the completion of the project on
time.

– Indicate the float (spare time) for other activities.

– They can handle very large & complex projects.

– They can be easily computerized & updated.

• Network techniques still suffer from several drawbacks…

Limitations

– Not easily understood by the project personnel.

– They do not define an operational schedule that tells who does, what, and when.

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 7.7 Forms of project organization
There is a need for entrusting an individual (or group) with the
responsibility for integrating the activities and functions of
various departments and external organizations involved in the
project work. Such an individual may be called the project
manager or project coordinator.

• Depending on the authority that is given to the project

manager/coordinator, the project organization may take one of
the following three forms

1. Line & staff organization

2. Divisional organization

3. Matrix organization
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 a) Line and Staff Organization
• A person is appointed with the primary responsibility of coordinating the work of

the people in the functional departments. He/she acts in a staff position to

facilitate the coordination of line management in functional departments.

• The project coordinator does not have authority and direct responsibility of line

management. He/she serves as a focal point for receiving project related

information and seeks to promote the cause of the project by rendering advice,

sharing information, and providing assistance.

He may gently coax line executives to strive for the fulfillment of project goals.

Deprived of formal organizational authority, he/she may find it difficult to exert

leadership and feel unsure of his role.

This type of organization is usually not suitable for large projects. However, it is

conducive to an efficient use of resources but is not suitable for an

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effective realization of project objectives
 b) Divisional Organization
• A separate division is set up to implement the project. Headed by the

project manager, this division has its complement of personnel over whom

the project manager has full line authority. It implies the creation of a

separate goal oriented division of the company, with its own functional

departments.

• While the project manager still has the problem of coordinating the inputs

of other organizations involved in the project, he/she has total formal

control over the division he/she heads.

• However, it is suitable for an effective realization of project

objectives but is not conducive to an efficient use of resources.

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 c) Matrix Organization
• It seeks to achieve the twin objectives of efficient resource

utilization and effective realization of project objectives, at the

cost of greater organizational complexity.

• The project manager integrates the contributions of personnel in

various functional departments toward the realization of project

objectives.

The personnel working on the project have a responsibility to their

functional superior as well as to the project manager.

It seems to be a better vehicle for the simultaneous pursuit of the

twin objectives, i.e., efficient utilization of resources and effective

10/29/2022 Instructor: Dr. Dagnu L. 34
attainment of project objectives.
 7.8 . Human aspect of project management
• A satisfactory human relations system is essential for the successful execution of

a project.

• Without such a system, the other systems of project management (whatsoever

sound they may be) are not likely to work well.

– Technical problems can often be solved with additional investment of resources.

– People’s problems may not be adequately solved in the short span of the project

life.

• To achieve satisfactory human relations in the project setting, the PM

must successfully handle problems & challenges relating to:

• Authority

• Orientation

10/29/2022 • Motivation Instructor: Dr. Dagnu L. 35

 7.9 Prerequisites for successful implementation

• Time & cost over-runs of projects are very common in developing countries (particularly in the public sector).

• Due to such time & cost overruns:

– Projects tend to become uneconomical.

– Resources not available to support other projects.

– Economic development adversely affected.

What can be done to minimize time & cost overruns and improve the prospects of the successful completion of

projects?

1. Adequate formulation

2. Sound project organization Proper implementation planning

3. Advance action
4. Timely availability of funds
5. Careful equipment tendering and procurement
6. Better contract management
10/29/2022 Instructor: Dr. Dagnu L. 36
7. Effective monitoring
 1. Adequate Formulation
• Project formulation is often deficient because of
one or more of the following shortcomings:
– Superficial field investigation
– Hurried assessment of input requirements
• Slipshod (careless) methods used for estimating costs &benefits
– Omission of project linkages
– Flawed judgments because of lack of experience & expertise
– Undue hurry to get started
– Deliberate over-estimation of benefits and underestimation of
costs, etc
• Care must be taken to avoid these deficiencies.
– Ensure that the formulation and appraisal of the project is thorough, adequate,
and meaningful

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 2. Sound Project Organization
• A sound organization is critical for successfully
implementing a project.

• The following are the characteristics of a sound project

organization:

1. It is led by a competent leader who is accountable for the

project performance.

2. The authority of the project leader & his team is commensurate

with their responsibility.

3. Adequate attention paid to the human side of the project.

4. Systems & methods are clearly defined.

10/29/2022 5. Rewards & penalties related

Instructor:to performance
Dr. Dagnu L. 38
 3. Proper Implementation Planning
Prepare detailed implementation planning before commencing the actual
implementation.

I. Develop a comprehensive time plan for various activities like land

acquisition, tender evaluation, recruitment of personnel, construction of
buildings, erection of plant, arrangement for utilities, trial production run, etc.

II. Estimate meticulously the resource requirements

(manpower, materials, money, etc) for each period to realize the time

plan.

III. Define properly the inter-linkages between various activities of the project.

Specify cost standards

10/29/2022 Instructor: Dr. Dagnu L. 39

 4. Advance Action:
• When the project appears prima facie viable/desirable,

• initiate advance action in the following areas:

✓ Acquisition of land

✓ Securing essential clearances

✓ Identifying technical collaborators/consultants

✓ Arranging for infrastructure facilities

✓ Preliminary design & engineering

✓ Calling of tenders

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 5. Timely Availability of Funds:
• Adequate funds must be made available once a project is approved to meet

its requirements as per the implementation plan.

– Desirable to have funds even before the final approval to initiate advance action.

Firms having a comfortable liquidity position generally are able to implement

projects expeditiously & economically

These contribute to the successful completion of projects and sustain the

morale of project-related personnel at a high level

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 6. Judicious Equipment Tendering and
Procurement
• To minimize time over-runs, it may appear that a turnkey

contract has obvious advantages.

– Such contracts are likely to be bagged (taken) by foreign

suppliers when global tenders are floated.

Questions:
– How much should we depend on foreign suppliers?
– How much should we rely on indigenous suppliers?

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 7. Better (Proper) Contract management
• This is also critical to successful implementation.

– Reason: a substantial portion of a project is typically executed through

contracts.

• The competence & capability of all the contractors must be ensured. One weak-
link can jeopardize the timely

• Proper discipline must be inculcated among contractors & suppliers by

insisting that they should develop realistic & detailed resource and time plans
which are congruent with the project plan.

– Penalties must be imposed for failure to meet contractual obligations.

– Incentives may be offered for good performance.

• Help should be extended to contractors & suppliers when they have genuine
problems.

– Contractors & suppliers should be regarded as partners in a common pursuit

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 8. Effective Monitoring
• A system of monitoring must be established to follow-up the progress of the
project which helps in:

– Anticipating deviations from implementation plan

– Analyzing emerging problems

– Taking corrective action

Considerations when developing monitoring system:

– It should focus sharply on the critical aspects of project implementation. It must lay
more emphasis on physical milestones and not on financial targets.

– It must be kept relatively simple.

• May lead to redundant paper work & diversion of resources if the system is
overcomplicated.

• Monitoring may be viewed as an end in itself rather than as a means to implement

10/29/2022 the project successfully Instructor: Dr. Dagnu L. 44

 .
Project plan failures are mostly caused by
(Choudhury, 1988; Joy, 1994):

• Lack of integration in both planning and

implementation efforts,

• Absence of commitment on the part of people

engaged on implementation, and

• Non-involvement by the top management and

administrative ministries in the monitoring of projects
and in trouble-shooting

10/29/2022 Instructor: Dr. Dagnu L. 45

 Reporting
• Reports
• Project Status Reports

• Time/Cost Reports

• Variance Reports

• Not all stakeholders need to receive same

information

• Relationship between project’s information system

and overall organization’s information system

10/29/2022 Instructor: Dr. Dagnu L. 46

 Summary of the project cycle
Phas Project Situation analysis
e 1: identification Identification and idea generation
Preliminary screening
Phase Project Feasibility study
2: formulation Project implementation planning
and
preparation

Phase Project Project implementation to achieve

3: implementation projects
objectives/results
Project sustainability ascertained
Monitoring and reporting
Risk assessment and management
Phase Evaluation Mid-course evaluation for amendments
4: and improvements
End of the project evaluation
10/29/2022 Generation ofL. lessons learned
Instructor: Dr. Dagnu 47
 The Project Final Report
• Project Performance
• what was achieved and reasons for resulting performance
• Administrative Performance
• review of how well administrative practices worked
• Organizational Structure
• identify modifications to help future projects
• Project Management Techniques
• recommendations for improvements in future projects

10/29/2022 Instructor: Dr. Dagnu L. 48

 PROEJCT TERMINATION
• When to terminate a project

• When
• the degree to which the project has met its goals

• the degree to which the project qualifies against a set of factors associated with success or failure

• Types of project termination

1. Project Extinction

• project activity suddenly stops

• either successfully completed or high expectation for failure

2. Termination-By-Addition

• becomes a new formal part of organization

3. Termination-By-Integration

• becomes standard part of operating systems

10/29/2022
“ THE END “
Instructor: Dr. Dagnu L. 49