PROJECTMANAGEMENT

I
NTRODUCTION

Allofusha vebe eni nvolvedi npr oj ect

s,whe t
hert heya reourpe rsona lprojectsori n
businessandi ndus try. Exa mpl esoft ypi c
alpr oje ct
sare :
 Pe rs ona lpr oj ect
s( obt ainnigA BCOM,wr it
ear eport
,pl anawe dding,planta
garde n,bui ldahous ee xtension)
I ndus t r
ialpr oject
s( c ons t
ruc tabui l
di ng,pr ovideaga ss upplyt oa nindustri
al
estate ,bui l
damot orwa y,de signane wc ar
)
 Bus ine sspr oj ec
ts( de velop a  
ne wc ourse,de vel
op a  ne wc ourse,de vel
op a
comput ersys tem,i ntroduc eane wpr oduc t
,pr epa r
ea na nnualre port,setupane w
office )
 
Projectsca nbeofa nys izea nddur a ti
on.The yc anbes i
mpl e,likepl anningapa rt
y,or
compl exlikel a unc hingas paces huttl
e .
 
Ge neral
lypr oje ctsa rema deupof :
 ade f inedbe ginning,
 mul tiplea c
tivi t
ieswhi cha repe rf
orme dt oa plan,
 ade f inede nd.
 
The r
e f
oreapr oj ectma ybede fine da same ansofmovi ngf r
omapr oblemt oas olut
ionviaa
serie
sofpl anne da c t
ivi t
ies.
 
 A pr ojecti same ansofmovi ngf rom apr obl emt oas ol
utionv i
aas eri
esof
planne da ctiviti
es. 
 Apr oj ectha sade fi
ni t
ebe ginninga nde nd. 
 Pr oje c t
sc ons istofs eve ralac t
ivit
ies.
 
Twoe ssenti
a lf e
atur esa repr e senti ne verypr ojectnoma tt
e rhows i
mpl eo rcompl i
cated
theya re.Int hef irstpl ace,a llp r
ojectsmus tbepl annedouti na dvancei ftheya retobe
successfull
ye xe cuted.  Se condly,t hee xecut
ionoft hepr ojectmus tbec ont roll
edtoe nsure
thatthed esi
re dr esultsa r
ea chie ved. 

Onmos tproje
ctsitispossi
bletocarryoutmul ti
pleacti
vit
iessi
mul t
aneously.Us ual
lyitis
possi
bletoperforms ever
alacti
viti
esatt hes amet i
me,howe vertherewi llbea ct
ivit
ies
whichcannotbeginuntilaprecedi
nga ct
ivityha sbeencompleted.
 Suchr elat
ionshi
psa r
e
ref
err
edtoa sdependencie
sorpre c
edenci
e s,andwhe nplanni
ngapr ojectitisimportantt
o
est
abli
shtheorderofpr ecede
nceofde pende ntacti
vit
ies
,andt oesta
blishthosea ct
ivit
ies
whichcanbepe rf
ormedinpa r
all
elwithothe ract
ivi
ti
es.
 

i|
Page
Rega rdles
softhena t
ureorsizeo fyourproj
ec tasucce
ssf
ulout
comecanonl
ybea chie
ved
by using sound proj
ectma nageme nttechniques
.Themos twidel
y us
eda nd popula
r
me thodso fprojectma nagementa reGa nttCha rt
s,Crit
ic
alPathMe t
hod(CPM)a nd
Progra mmeEva l
uati
on and Re view Technique( PERT).However
,itisimportantto
reme mbe rthatprojec
tsarec arrie
doutbype ople,andthehumana s
pect
sofpr oject
ma nage mentar
ec r
iti
calf
ortheprojectsuc
c e
ss.

i
i|Page
 TOPI
CONE:I
NTRODUCTI
ONANDOVERVI
EW

I
ntr
oduc
tion:

Thee ff
ectivene s
sofpr oje
c tmana gementi scriti
calinas sur
ingt hes uc cessofa ny
substant
ialunde rtaki
ng. Areasofresponsibi
lit
yfortheproje
c tma na
ge rinc ludeplanning,
controlandi mpl ementati
on. Aproje c
tshouldbei nit
ia
tedwi t
haf easibilit
ys t
udy,whe re
ac learde finiti
onoft hegoa l
sa ndul t
ima t
ebe nefi
tsneedt obee s tabl
is hed.
 Se nior
ma nagers's upportf orproject
sisi mportants oa stoe nsurea ut
hor it
ya nddirecti
on
t
hroughoutt heproject'
sprogressand,als
ot oensurethatt
hegoa lsoftheor ga ni
zat
iona re
eff
e c
tivel
ya chi
eve dwi t
hint hi
spr oces
s. Thepa rt
icul
arf orm ofs uppor tgivenc a n
i
nflue nc
et hede greeofr e
sis
tancetheprojectencounter
s. 

Knowledge,skil
ls
,goa l
sandp ers
ona
lit
iesareallfa
ctor
sthatneedtobec onsi
dered
wit
hinprojectmanagement
. Theproj
ectmanagerandhis/
hert
eams houl
dcolle
cti
vely
pos
sessthene c
ess
aryandrequis
it
eint
erpe
rsonala
ndtechni
cals
kil
lstofac
il
it
atecont
rol
ove
rthevariousact
ivi
ti
eswithi
nthepr
ojec
t. 

Thes ta
gesofi mpl ementati
on mus tbea rt
icul
ateda tt hepr ojec
tpl anning pha se.
 
Di s
aggregatingt hes t
agesa tit
se arlypoi
nta s
sist
si nthes uc c
ess f
uldevelop mentoft he
projectby pr oviding a numbe rofmi lest
one st hatne e dto bea cc
ompl ishedf or
compl et
ion. I na ddit
ion top lanning,thec ontroloft hee volvi
ng pr ojec
ti sa lso
prerequis
itetos ucc es
s. Contr
olr equir
esa dequatemoni tori
nga ndf eedbackme c
ha nis
ms
bywhi chs eniora ndpr oj
ectma nagerscanc ompa reprogr e
ssa gainsti
nitia
lpr oj
ec t
ionsat
eachs ta
geoft hepr oject
. Moni t
oringandf eedbacka lsoe nablesthepr oj
ec tmana gerto
antic
ipateprobl ems( e.
g.:theknoc k-oneffectsofla t
estartorf i
ni s
htime s
)a ndthe ref
ore
takepre-empt i
vec orr
ecti
veme asuresfortheb enefi
toft hepr oj
ec tover
all.
 

Proj
e ct
snorma ll
yi nvol
vet heint
roduct
ionofane ws yst
emofs omekinda nd,inalmost
allc
a ses
,newme thodsandwa ysofdoingthings. Thesei
mpa ctsuponthewo rkofothers
:
the" use
rs".
 Us erc onsult
ati
onisa ni mportantfact
ori nthes uccessofpr oje
ctsand,
inde
e d,t
hede greeofus eri
nvolvementcaninfluencetheextentofsupportfortheproj
ect
orit
si mpleme nt
ationplan.
 Ae s
senti
alqual
ityoft heproje
ctma na
geristhatofbe i
nga
goodc ommuni c
ator,notj us
twi t
hinthepr ojectteami t
self,butwi t
ht her es
toft he
organiza
tionandout si
debodiesaswe l
l(theuse r
sma ybeinternalorexte
rnal
).

1|
Page
De
fini
ti
on1
Apr oj
e c
tisas e
tofact
ivi
tieswhic
hshouldbeundert
ake
ninalogi
calsequenceforthe
proposeofat
ainings
omes peci
fi
edobj
ect
iveswi
thinnagive
nti
meschedule
,b udgeta
nd
atagivenqual
ityspe
cif
ica
tion
De f
ini
tion2
Apr oj
ectisate mpora
rye ndeavorunde rt
akentopr ovideortoproduceaun iqueservice
orproduct.
Temporaryme ansithasas pe
cifi
edbegi nningandend.
Uniqueme ansnotoprojecttothesame .The ydif
ferfromonea nothe
runl i
keopera
tions.
Examplesofpr oje
ctsincl
ude:-Construc t
ionacti
viti
es,roads
,bridges,houses:Res
e arch
and developmenta ct
ivit
ies:Ca mpaigns ,poli
ti
cal,di se
ase
s,pr omotions,ma r
keting:
Inf
orma t
ionsystemdev e
lopments:Launc hingofnewf iel
ds

Othe
rTerminologyandDe f
init
ions
 
A pr
ojec
tisani nt
erre
lat
eds e
tofa ct
ivi
ti
est
hathasadefi
nit
est
art
inga
nde
ndi
ngpoi
nt
andre
sult
sintheaccompli
shme ntofauni
que
,oft
enmajorout
come.
 

"
Proj
ectmanagement
"is
,the
ref
ore
,thepl
anni
nga
ndc
ont
rolofe
vent
stha
t,t
oge
the
r,
c
ompris
etheproj
ect
. 

Pr
ojec
tmanagementa
imstoe
nsuret
heeff
ect
iveuseofr
esour
cesa
ndde
li
ver
yoft
he
pr
oje
ctobj
ect
ive
sonti
meandwit
hinc
ostc
onst
rai
nts
. 

Ana c
tivi
tyort
aski
sthesmal
les
tuni
tofworkeff
ortwit
hint
hepr
ojec
ta ndc
ons
ume
s
bot
htimeandre
sour
ceswhi
char
eundert
hec
ontr
olofthepr
oje
ctma
nager.

Aproje
ctisaseque
nceofac
tiv
iti
est
hatha
sade f
ini
tes
tar
tandf i
nis
h,ani
dent
if
iabl
e
goa
landanint
egr
ate
dsys
temofcompl
exbutint
erdepe
nde
ntrel
ati
onshi
ps.
 

Asche
dul
ea ll
oca
tesres
ourc
estoacc
omplis
hthea c
tivi
ti
eswi
thi
nat
ime
fra
me.
 The
s
che
dules
etspr
ior
it
ies
,st
artt
ime
sandfi
nis
htime
s. 

Proj
ec tmana ge
me ntis
:theadeptuseofte
chni
quesa
ndskil
ls(ha
rdands
oft
)inpl
anni
ng
andc ontr
oll
ingta s
ksandr e
sourcesnee
dedfort
heproj
ect
,frombot
hins
ideandout
si
de
oforga ni
sat
ion,toachi
everesul
ts.
 

Thepurpos
eofproje
ctma
nagementi
stoachi
eves
uc c
ess
fulpr
oje
ctc
ompl
eti
onwi
tht
he
re
sour
cesavai
labl
e.
 Asuc
cess
fulpr
oje
cti
sonewhich:
2|
Page
  hasbeenf
ini
shedonti
me
i swit
hini
tscos
tbudget
 Perf
ormst
oat ec
hnic
al/
per
for
manc
est
anda
rdwhi
chs
ati
sfi
est
hee
ndus
er.

Fe
atur
esofPr
oje
cts

 Projectsareofte
nc arri
edoutbyat eamofpe oplewhoha vebe enassembledfor
thatspe c
ificpurpose. Thea ct
iviti
esoft hist e
am ma ybec o-ordinat
edbya
projec
tma nager
.
 Projectteamsma ycons i
stofpe oplefrom diff
erentbackgroundsa nddiffer
ent
pa r
tsoft heo r
ganizati
on. Ins omec asesprojectte
amsma yconsistofpeople
fromdi ff
e r
entorgani
z ati
ons.
 Projectteamsma ybei nte
r-disci
plinarygroupsa nda r
elike l
ytolieout s
idethe
norma lorganiz
ationhierarc
hi es
.
 Thepr ojectteamwi llber esponsiblefordeliver
yoft hepr oje
ctendpr oductto
somes pons orwithi
norout sidetheor ganiza
tion.
 Thef ul
lbe nefi
tofa nyproj
ect
wi l
lnotbe comea vai
lableunt i
lthepr oj
e c
tasbe encomple t
ed.
 
Inrecentyearsmoreandmor eacti
viti
eshavebeenta
ckl
edonaproj
ectbas
is. Projec
t
te
a msandapr oje
ctma na
gementapproachhavebe
comecommoninmostor
ga niz
ations
.
Theba si
ca ppr
oachestoproj
ectmanagementremai
nthesamer
ega
rdl
essofthetypeof
proje
ctbeingconsi
dere
d.

Exa
mpl
esofPr
oje
cts

 Engi
nee
ringa
ndc
ons
truc
tion

Theprojectsareconc e
rnedwi t
hproduci
ngac l
earphys
ica
loutput
,suc
ha sro
ads,bri
dges
orbuil
ding s
. There qui
reme nt
sofaprojectteama r
ewe l
ldef
inedintermsofs
kill
sa nd
background,asar
et hema inproce
durestha
tha vetobeunder
gone. Mostoft
heproble
ms
whichma yconfr
ontt hepr oje
cttea
ma relikelytohaveoccurre
dbe f
oreandtheref
ore
the
irsoluti
onma ybeba s
edupo npaste
xperiences
.

I ntr
oduct
ionofnews y
stems
Theseproject
swoul dincl
udec omputeri
zat
ionpr ojec
tsandthei nt
roduc
tio
nofne w
syst
emsa ndprocedur
esincl
udingfinanci
alsyste
ms . Thenat
ur ea ndconst
it
uti
onofa
proj
ectt
eamma yvarywit
hthesubjectoftheproj
ec t
,asdif
fer
ents kil
lsmayberequir
ed
anddiff
erentend-
usersmaybei nvolved.
 Ma j
orpr oje
ctsi
nvolvingas yst
emsa na
lysi
s
3|
Page
a
ppr
oac
hma
yinc
orpor
atec
lea
rlyde
fine
dpr
oce
dur
eswi
thi
nanor
gani
zat
ion.

 Re s
pondi
ngt odeadl
ine
sa ndc hange
Ane xampleofrespondingtoade adli
nei stheprepa
rat
ionofa nannua
lr epor
tbya
specifi
ed date.An i ncr
easi
ng numbe rofpr oj
ectsa r
ec once
rned wit
h de s
igni
ng
organisat
iona
lore nvir
onmenta
lc hanges,invol
ving deve
lopi
ng new product
sa nd
servi
c e
s.

Pr
oje
ctsa
remor
espe
cif
ict
hanpr
ogr
amsi
sge
ner
all
ywi
dere
.g.Educ
ati
onpr
ogr
ams
,
HI
Vpr
ogr
amse
tc.i
nrur
ale
lec
tri
fi
cat
ionpr
ogr
am.
Pl
an(
ori
gina
lpl
ans
,na
tiona
lpl
ans
,st
rat
egi
cpl
ans
)

Pr
ogr
ams(
sour
cesofpr
oje
cts
)

Pr
oje
cts

Ta
ste
s(t
heya
regr
oupsofi
nte
rre
lat
eda
cti
vit
ies

Ac
tivi
ti
es(
sma
lle
stuni
tinapr
oje
ct)
Thepr
oje
ctma
nage
menti
sre
spons
ibl
efora
tta
ini
ngt
heobj
ect
ive
(s)ofapr
oje
ct.

Someoft
hec
har
act
eri
st
icsofapr
oje
cti
ncl
ude
:-
1.
Spe
cif
icObj
ect
ive
s:Thet
hre
ege
ner
icobj
ect
ive
sofapr
oje
cta
re
4|
Page
 a) Ti
me- de
ter
mi ne
dbyt h
eschedul
eofa c
tivi
ti
e s
b) Cos
t-det
erminedbythebudget
c) Qual
ity-
dete
rminedbythespeci
fi
cat
ionofc ust
ome
rs

Projectsshoul dme etther e quirements/s

pe ci
fic
a t
ionsofthes t
ake holders
.Stakehol
ders
incl
ude :-
be ne fi
ciari
e s
,f i
na nc es,impleme nters
,vi ct
imsofthepr oject.(i
nmi ni
ngma y
havet odispl aces omepe opl e)
2.Limi t
edLi feSpa ni.e.itist emporal
3.SingleEnt ityi.e.itisas tanda lone.Itcome supt ospeci
fi
cproduc t
.
4.Re l
iesonTe amwor k:Impl eme nte
dbyt e ams
5.FollowsaSpe cifi
cLi feCyc le
6.Uniquei .e .no2pr oj
ec t
si .e.thes a
me .Eve nwhe nunder
takingas imil
arproj
e ct
,the
achievepr oje ctprovidesat emp l
a t
e.
7.Ke e pCha ngingi .e.pr ojec t
ske epc hangingde pendi
ngonc irc umstances
.Thust hey
mus tbea da ptable.
8.ProjectsAr eMa deToOr de r
:Unl i
keope ra
tionswhereonepr oduc esandthenlook4
custome r
s.
9.Ha veHi ghLe velofRi ska ndUnc ert
a i
nty

Rol
esandRe sponsibi
li
ti
esoftheProje
ctMa nager
 
Thef
oll
owi ngma ketherol
esandr e
sponsi
bil
iti
esofaprojectmanager
:
a)Topl anthoroughl
ya l
las
p e
c t
softheproje
ct,sol
ici
ti
ngtheacti
veinvolve
me ntof
allf
unc t
ionalare
asinvol
ved,inordert
oobt ai
nandma int
ainareal
ist
icpla
nt ha
t
sati
sfie
stheircommitmentforperf
ormance.

b)Toc
ont
rolt
heor
gani
zat
ionofma
npowe
rne
ede
dbyt
hepr
oje
ct.

c
)Toc ont
rolthebas
icte
chni
caldef
init
ionoft
hepr
ojec
t,e
nsur
ingthat"
tec
hnic
al"
ve
rsus"cos
t"tr
ade-
off
sdet
erminethespeci
fi
car
easwher
eopti
mi z
ati
onis
ne
cessa
ry.

d)Toleadthepeopl
eandorgani
zat
ionsass
ignedtotheproje
ctatanygi
venpoi
nti
n
ti
me. St
rongposi
ti
vele
a de
rshi
pmus tbeexerci
sedinordert
oke e
pthemany
dis
parat
eelement
smovinginthesamedirec
tioninaco-oper
ati
ve.

e
)Tomoni
torpe
rfor
manc
e,c
ost
sande
ffi
cie
ncyofa
lle
leme
ntsoft
hepr
oje
cta
ndt
he
5|
Page
 proj
ectasawhol
e,exer
cisi
ngjudgmenta
ndl
eade
rshi
pinde
ter
mini
ngt
hec
aus
es
ofprobl
emsandfac
ili
tat
ingsol
uti
ons
.

f
)Toc ompl
etet
heproj
ectons
chedul
eandwit
hinc
osts
,thes
ebe i
ngtheo
ver
all
s
tanda
rdbywhic
hperfor
manceoft
heproj
ectma
nageriseva
luat
ed.

g)Re
spons
ibl
e4de
fini
nga
ndma
int
aini
ngt
hei
nte
gri
tyofapr
oje
ct.

h)De
vel
opst
hee
xec
uti
onpl
ana
ndor
gani
zesf
ort
hee
xec
uti
onofhepl
an.

i
)Invol
vedi
nnegoti
ati
onforc
ommi t
mentswit
htheva
riouss
take
hol
der
s.E.
g.t
eams
a
ndcondi
ti
onsofgr
ants
,empl.Cons
tra
cts
,

j
)Hei
sthedi
rec
tor
/coor
dina
tora
ndc
ont
rol
lerofpr
oje
cta
cti
vit
ie
s.

k)Hemana
gesr
esour
cesus
edi
nthepr
oje
cti
ncl
udi
nge
qui
pme
nt,f
ina
nce
sand
huma
nres
our
ces.

l
)Re
spons
ibl
e4s
ati
sfyi
ngac
ust
ome
r,t
hegovt
,publ
ice
tcwha
teve
rthe
irn
eedsi
.e
.

m)Re
spons
ibl
e4pr
obl
ems
olvi
nga
ndc
onf
li
ctr
esol
uti
on.

Di
ff
ere
ncebe
twe
enPr
oje
ctMa
nage
menta
ndGe
ner
alMa
nage
ment
a)Projectmgt.dif
fer
sfromge ne ra
lmgt .becauseproj
ectsdifferfr
omnonpr oje
cts.
Thehighl e
velofconfl
ictspres
enti nproje
ctsrequir
esthatthepr oj
ectma nagerhas
spec
ialskil
lsi
nc onfl
ic
tre s
olut
ion.
Theprojectmanagerneedstoha vec r
eati
vit
ya ndflexi
bil
itys oastobea bletoadjust
rapi
dlytochanges.
Theref
oretheprojec
tma nagermor eoftenthannotma nage sbye xce
pti
onbe c
ause
mostofthewe ekhandledisexce pt
ionsunlikerout
ineactivit
ieshandle
dbyge ner
a l
mgt.Thusde l
egati
onispos s
ibl
e.

6|
Page
 b)Planni
ng-
Proje
ctbudget
ingdif
fersfr
omnowpr oj
ectbudgeti
ng.Inpr
ojec
ts,
budget
si.
e.crea
tednewlyforeachproj
ecta
ndoft
enc overseve
ralpr
oduct
sint
o
thepra
cti
ce.Butingene
ralmgt.budget
ingi
sdoneannually

Innonproject
s,thesequenc
einwhichacti
vit
iesi
.e.doneiss
etwhent
heproduct-l
ine
isdes
igned.Butinprojec
tseverypr
oje
ctshasascheduleofi
tsownac
tivi
ti
es.Thes
e
proj
ectsi
.e.handlet
oa ut
oma t
e.

c)Or i
ginalstruc t
ure
Innowpr oje
c tr outi
newi l
ltake
splac
ewhenawe lldefi
ne dst
ruct
ureofde velops
,
devt
s,secti
onse tc.Hiera
chyisals
oknowninproj
e c
ts.Thene edf
ort echni
c a
l
knowledge,infor mationandspeci
als
kil
lso
fte
nr e
quirethatdepar
tme ntall
inesbe
proc
ossed.Proj .mgt .ist
ransdi
sci
pli
nar
yinnatur
e.Inge ner
almgt,thingscanbe
compartmentaliz ed

d)I
nge ne
ralmgttherei
sawe l
ldefi
nedma nage
ria
lhie
rar
chy.Thuseve
ryoneknows
t
herela
tionshi
pbetweens
uspi
ciousandsubordi
nat
es.(
Theyarecl
ear
).Most
a
uthori
tye manat
esfr
omtheposoneoc c
upies.

e
)Ont heotherhand,i
nproj
ect
s,res
ponsi
bil
it
ie
swhopos iti
onofrankiscommon.
Theproj
ectmana ge
rdepe
ndsonhisnegot
iat
ionski
lls
.
Sour
cesofinfl
uencebyproj
ectmanage
rishisski
ll
s,exper
ti
se,c
ha r
isma

PROJ
ECTLI
FECYCLE.
Thepr
oje
ctl
if
ecyc
leha
side
nti
fi
abl
est
arta
nde
ndpoi
nts
,whi
chc
anbea
ssoc
iat
edwi
tha
t
imes
cal
e.Apr
oje
ctpa
sse
sthr
oughs
eve
raldi
st
inc
tpha
sesa
sitma
tur
es.Th
eli
fec
ycl
e
i
ncl
ude
sal
lpha
sesf
rom poi
ntofi
nce
pti
ont
ofi
nalt
ermi
nat
ionoft
hep
roj
ect
.The
i
nte
rfa
cesbe
twe
enpha
sesa
rer
are
lyc
lea
rlys
epa
rat
ed,e
xce
pti
nca
seswhe
repr
opos
al
a
cce
pta
nceoff
orma
laut
hor
iza
tion t
o pr
oce
eds
epa
rat
est
het
wo pha
ses
.Ine
ach
s
ucc
eedi
ngpha
seofapr
oje
ctne
wanddi
ff
ere
nti
nte
rme
dia
tepr
oduc
ts(
res
ult
s)a
re
c
rea
ted,wi
tht
hepr
oduc
tofonepha
sef
ormi
ngama
jori
nputt
othene
xtpha
se.
7|
Page
Ther
ateofe
xpe
ndi
tur
eofr
esour
cesc
hange
s,us
ual
lyi
ncr
eas
ingwi
ths
ucc
eedi
ngpha
ses
unt
ilar
api
d de
cre
asea
tcompl
eti
on.Thepe
opl
e,s
kil
ls
,or
gani
zat
ions
,and ot
her
r
esour
cesi
nvol
vedi
nthepr
oje
ctc
hangei
nea
chl
if
ecyc
lepha
se.Ma
jorr
evi
ewoft
he
e
nti
repr
oje
ctoc
cur
satt
hee
ndofe
achpha
se,r
esul
ti
ngi
naut
hor
iza
tiont
opr
oce
edwi
th
t
hene
xtpha
se,c
anc
ell
ati
onoft
hepr
oje
ct,orr
epe
tit
ionofapr
evi
ouspha
se.Apr
oje
ct
c
ons
ist
sofs
eque
nti
alpha
ses
.

The
sepha
sesa
ree
xtr
eme
lyus
efuli
npl
anni
ngapr
oje
cts
inc
ethe
ypr
ovi
deaf
rame
wor
k
f
orbudge
ti
ng,ma
npowe
randr
esour
cea
lloc
ati
on,a
ndf
ors
che
dul
ingpr
oje
ctmi
les
tone
s
a
ndpr
oje
ctr
evi
ews
.Theme
thodofdi
vis
ionofapr
oje
cti
ntopha
sesma
ydi
ff
er
s
ome
wha
tfr
omi
ndus
tryt
oindus
try,a
ndf
rompr
oduc
ttopr
oduc
t.

St
ucke
nbr
ucke
sta
bli
she
dsomeo
ftheke
ygove
rnme
ntl
if
ecyc
lepha
sea
cti
onsa
sfol
lows
.
St
ucke
nbr
uck'
sFi
gur
eisas
howni
nbe
low:

Fi
gur
e2:St
ucke
nbr
uck'
sgove
rnme
nts
yst
eml
if
espa
n

8|
Page
St
ucke
nbr
ucka
lsot
abul
ate
swh
atmus
tbedonei
nea
chpha
sebybot
htopma
nage
ment
a
nd,a
sthepr
oje
ctma
tur
es,byt
hepr
oje
ctma
nage
rass
howni
nTa
ble1
Conc
eptorI
nit
iat
ion Gr
owt
h or Pr
oduc
tionor Shut
down
Or
gani
zat
ion Ope
rat
iona
l
Ma nageme nt de cides Orga nizat
ional The ma jor Proj ect
thataprojectisneeded. a pproac h work of t he termi nat
ed.
defined. project
Ma nageme nte s
tabli
shes accompl is
he d Ma npower,
goa l
sa nde stimatesof Pr ojectplana nd (i
.e.
, de si
gn,r esour c
es,a nd
resourc
esne eded. schedul e f or developme nt,c ommi tment
s
ope r
ational constructi
on, t r
a nsferr
ed t o
Ma nageme nt" s
e l
ls
"t he pha s
ede fi
ne d. pr oduc t
ion, ot he r
organizat
ionont hene ed test
ing, s i
te orga niz
ati
ons.
forprojec
tma nagement. Project acti
vation,
objecti
ve s
,ta s
ks etc.
).
Ma nageme ntma keske y( WBS) , a nd
appointments. resources
defined.

Proj
ect t e
am
buil
d-up.

Ta
ble1:St
ucke
nbr
uck'
sGove
rnme
ntpr
oje
ctpha
sea
cti
ons

Al
lpr
oje
ctsgot
her
ethef
oll
owi
ngs
tage
swhe
the
rbi
gors
mal
l.The
yta
ket
hef
oll
owi
ng
pr
oje
ctl
if
ecyc
lea
ppr
oac
h:

Pr
oje
cti
dea I
dent
if
ica
ti
on Pr
epa
rat
ion
(
Conc
ept
ion)

9|
Page
Te
rmi
nal Appr
ais
al
Eva
lua
tion

Se
lec
ti
on
Ongoi
ng
Eva
lua
tion

Ne
got
iat
ion&Fi
nan
cing

Pa
rti
cipa
tor
y I
mpl
eme
nta
tion Pl
anni
ngf
orI
mpl
eme
nta
tion
Re
por
ti
ng

a
)Pr
oje
cti
dea/
conc
ept
ion
Sour
cesofi
dea
si.
e.ne
edsun
met
,inf
orma
ti
onf
rom ot
herpe
opl
e.Ne
edsc
omef
rom
s
ati
sfa
cti
onl
eve
ls,ne
eds
.

Pe
risa
nide
are
gar
dingi
nte
rve
nti
oni
nas
pec
ifi
car
ea2a
ddr
essa
nide
nti
fi
edpr
obl
emi
s
f
orme
dorde
vel
ope
d.
Ani
deama
ybec
onc
eive
dthr
ought
hef
oll
owi
ng:
-
(
i) Needsofagi
venc
ommuni
tygi
vena
reai
.e
.ide
nti
fi
edt
hisane
edi
dent
if
ica
tion
ofa
sse
ssme
nte
xer
cis
e

10|
Page
Ne
edsma
ybei
dent
if
iedt
husa
nyoneormor
eoft
hef
oll
owi
ng:
-
(
a)Me
ete
leme
nte
.g.f
ibe
ropt
icc
abl
e.
(
b)Re
sour
cea
vai
labi
li
ty-
thos
ew/
res
our
cest
heyl
ook4wa
yst
heyc
anbeus
edt
o
va
lue
.
(
c)Ava
ila
bil
it
yoft
echnol
ogy.Wa
ys2ut
il
izet
echnol
ogye
.g.ut
il
iza
tionofi
nte
rne
t,
mobi
let
ele
phony
(
d)Na
tur
alc
ala
mit
iese
.g.f
loodsa
tRa
chuonyo,l
ands
li
des
,dr
aught

(
ii
) Thedi
scus
sionswi
the
xpe
rts
,le
ade
rsa
ndt
hos
ewi
the
xpe
rie
ncei
ngi
vena
rea
s.

b.Pr
oje
ctI
dent
if
ica
tion
Af
terc
onc
ept
ionofi
dea
s,i
tsi
mpor
tantt
hatt
heybec
apt
ure
dinpr
opos
alf
orms
otha
tthe
pr
opos
alc
anbes
ubmi
tt
edt
oana
genta
ndt
hea
genc
ytha
tca
nexa
minet
hei
deapr
act
ice
Thi
sage
nt/a
genc
ywi
llus
eobj
ect
ivej
udgme
nt2a
sse
sst
hepr
opos
albe
for
eitgoe
sfor
f
urt
hera
nal
ysi
s

c
)Pr
oje
ctPr
epa
rat
ion
I
nvol
vesc
oll
ect
ionofda
taa
ndi
nfoont
hep
ropos
edpr
oje
ct.I
tsus
ual
lyc
onduc
tedby
pe
opl
ew/t
echni
cala
nda
nal
yti
cals
kil
lsi
nor
dert
ode
ter
minewhe
the
rthepr
oje
ctc
anbe
a
chi
eve
dandt
oes
tabl
is
hwhe
the
rthepr
oje
cti
sfe
asi
ble
.Fe
asi
bil
it
yinvol
vesvi
abi
li
tyof
t
hepr
oje
cti
.e
.cos
tsoft
hepr
oje
cta
ndbe
nef
it
soft
hepr
oje
ct.
Thi
sinc
lude
 Fi
nanc
ialf
eas
ibi
li
ty
 Ec
onomi
cfe
asi
bil
it
y
 Te
chni
calf
eas
ibi
li
ty
 Ma
rke
tfe
asi
bil
it
y

11|
Page
  Envi
ronme
ntf
eas
ibi
li
ty
 Le
galf
eas
ibi
li
ty&Soc
ialf
eas
ibi
li
ty

Re
asons
Pr
oje
ctsma
ybema
deont
hes
cope
,loc
ati
ona
nds
izeoft
hepr
oje
ctba
sedont
hea
nal
yse
d
oft
heda
tac
oll
ect
ed
I
nbi
gpr
oje
cts
,ca
ref
ulpr
epa
rat
ioni
ncl
udi
ngf
eas
ibi
li
tya
nal
ysi
sma
yta
keu
pto10% of
t
het
ota
lcos
toft
hepr
oje
ct.
Doa
llpr
oje
cts(
govt
)got
hro’f
eas
ibi
li
tys
tudi
es?Ye
se.
g.El
dor
etAi
rpor
t,Ke
nyaNya
yo
c
ar,Ka
bar
akAi
rpor
t,whi
teEl
eph
ant
spr
oje
cts
.

d.Pr
oje
cta
ppr
ais
al
Att
hiss
tagef
urt
hera
nal
ysi
soft
hepr
oje
cti
scove
redout
.Whe
reac
rit
ica
lav
iewi
sdone
byat
eamofi
nde
pende
nte
xpe
ctswhoa
renoti
nvol
vedi
nfe
asi
bil
it
ybodi
esd
onee
arl
ies
t.

Thi
spr
ovi
desa
noppor
tuni
tyt
ore
exa
minee
ver
yas
pec
toft
hepr
oje
ctbe
for
efunds
r
ais
ingc
ommi
tt
ed.
De
vel
opme
ntbudge
tingma
ybeu
nde
rta
ken

e
.Pr
oje
cts
ele
cti
on
Af
tera
ppr
ais
ing,t
hepos
sibl
ethepr
oje
cts
,anoofvi
abl
epr
oje
ctma
yre
mai
nthe
se
pr
oje
ctsa
rer
anke
dsoa
stoc
hoos
etheone
stobei
mpl
eme
nte
dcos
t.
Thi
sisduet
osc
arc
ityofr
esour
cesf
orpr
oje
cti
mpl
eme
nta
tion

f
.Ne
got
iat
iona
ndFi
nanc
ing
Af
terpr
oje
cte
lec
tion,t
hes
eisn
eedt
one
got
ia
tef
orf
undi
nga
ndt
heAs
soc
iat
eda
spe
cts

12|
Page
e
.g.
-Con
dit
ionsoft
heg
rant -Cont
ri
but
ion f
rom va
rious
-Re
pay
ments
che
dul
e s
take
hol
der
s
-I
nte
res
tra
tes -Fl
owoff
unds
-Gr
azepe
riod,Et
c
Thi
scul
mina
tesi
ngove
rnme
ntdoc
ume
ntt
hatt
endst
oal
lthepa
rti
esi
nvol
ved.I
tai
dst
he
i
mpl
eme
nta
ti
onoft
hepr
oje
ct

h.Pl
anni
ngf
ori
mpl
eme
nta
tion
Thi
sisdone be
for
efi
nali
mpl
eme
nta
tion ofpr
oje
ct.I
tinvol
vest
he i
mpl
eme
nt.
Oc
cupa
tions
,be
nef
ici
ari
es,f
ina
nci
nga
genc
iesa
nda
lls
take
hol
der
s.
Thi
sena
ble
sthepr
oje
ctma
nage
rtoa
ddr
essi
mpl
eme
nta
tioni
ssue
sgi
vent
heove
ral
l
r
esour
ces
truc
tur
eandt
hewor
kinge
nvi
ronme
nt.

Themos
timpor
tantout
come
sofs
uchpl
anni
ngi
ncl
udet
imes
che
dul
es.Budge
tcommi
tt
ed
f
orva
riou
sac
tivi
ti
esa
ndqua
li
typl
ans
I
tsa
lsoi
mpor
tantt
ocomeupwi
thpr
oje
ctl
ogf
rame
s(l
ogi
calf
ormul
ar)i
.e
.PPM (
proj
ect
pl
anni
ngma
tri
x).Es
pec
ial
lyf
orde
vel
opme
nta
lpr
oje
ct.

i
.Pr
oje
ctI
mpl
eme
nta
tion
I
t’
sthemos
tcr
uci
als
tagef
ormos
tpr
oje
cts
.Thepr
oje
ctc
har
act
eri
st
icsa
ndunde
rta
ken
a
ccor
dingt
othepr
oje
ctpl
an.
Goe
sthr
ough3de
vel
opme
ntpha
ses
I
nve
stme
ntpe
riod
De
vel
opme
ntpe
riod
Ful
lde
vel
opme
ntpe
riod
Gi
vent
hedi
ff
ere
nti
nte
rpr
eta
ti
onsof"
impl
eme
nta
ti
on"wema
yque
sti
onSt
ucke
nbr
uck'
s
13|
Page
us
eoft
hiswor
d.I
sitt
he"
exe
cut
ionpha
se"
,ori
sitt
hel
aunc
hingoft
hee
nti
repr
oje
ct?

St
ageofPr
oje
ctI
mpl
eme
nta
tion
I
nve
stme
ntpe
riodde
vel
opme
ntpe
rful
lde
vel
opme
nt

STAGEOFPROJ
ECT
I
nve
stme
ntpe
riodde
vel
opme
ntf
ullde
vel
opme
nta
ndf
ini
sh
Ful
lde
vel
opme
nt
(
Slowf
ini
sh)

De
vel
opme
nt (
Qui
ckmome
ntum)

i
) Moni
tor
inga
ndRe
por
ti
ng)
Cove
rve
ryi
mpor
tantdur
ingi
mpl
eme
nta
tion
Moni
tor
inge
nta
ilsc
oll
ect
ingi
nfor
mat
iononhowpr
oje
cta
cta
rebe
ingi
mpl
eme
nte
d.Thi
s
i
nfor
mat
ioni
sthe
ncompa
redwi
tht
hepl
anf
ort
hepur
pos
eofna
rrowi
nga
nyga
ps
2|
Page
be
twe
ent
het
wo.Thi
sisi
mpor
tan
tbe
caus
emos
tpr
oje
ctst
hatf
aildos
odur
ingt
he
de
vel
opme
nts
tagepha
se.Thusa
rei
.e
.ve
ryus
efuli
fthe
yar
eus
edt
oimpr
ovet
he
ma
nage
mentoft
hepr
oje
ct.I
tisus
ele
sst
ocol
lec
tinf
orma
tiont
hati
snotgoi
ngt
obeus
ed.
j
) Eva
lua
tion
I
tinvol
vesas
yst
ema
ticr
evi
ewore
xte
rmi
nat
ionoft
hee
leme
ntofs
our
cesofs
ucc
essa
nd
f
ail
urei
npr
oje
cts
.Thei
nfor
mat
ionc
oll
ect
edf
rommoni
tor
ingi
sthema
ini
nputi
nto
e
val
uat
ion.
I
sconduc
teda
tthr
ees
tage
s:-
i
) Ex-
Ant
eeva
lua
tion-
donebe
for
eimp
leme
nta
tioni
sdonee
.g.s
kil
ls
,re
sour
ces
r
equi
red
i
i) Conc
urr
ent
/ongoi
ngEva
lua
tion-
donedur
ingpr
oce
ssofi
mpl
eme
nta
tion
i
ii
) Ex-
Pos
tEva
lua
tion-
donea
tthee
ndoft
hei
mpl
eme
nta
tioni
.e
.wha
tha
sbe
en
a
chi
eve
d?Wha
tisnota
chi
eve
d?Wh
ywedi
dn’
tac
hie
ve.

Re
asonsf
orf
ail
ureofpr
oje
cts(
e.g.gove
rnme
nt)
i
) I
nsuf
fi
cie
ntr
esour
ces
i
i) Cha
nge
sine
nvi
ronme
nt
i
ii
) Poorf
eas
ibi
li
tys
tudi
es
i
v) La
ckofmoni
tor
ing
 
Ther
ec anbema nyot
herre
asonswhyproj
ectsgowrong. Themostcommonreas
onsare
asf
oll
ows :
a.Pr oj
ectgoal
sar
enotcl
earl
ydefi
ned
b.The recanbeconst
rai
ntsonthecomplet
ionofproject
sar
isi
ngfrom t
hedif
fer
ent
objec
ti
vesof:Shor
tt i
mes c
a l
e;Resourceavai
labi
li
ty;Qual
ityfac
tor
s;Huma n
fact
ors

 
Ther
eareperhapstwost
ageswhic
hc a
nhe l
pinensur
ingt
hatgoal
sarepro
per
lyde
fine
d
a
ndachi
evabl
e :
 
i
. Ensuri
ngt ha
tthecl
ients
peci
fi
cat
ioniscl
earandunder
sta
ndabl
e.Todothi
syou
3|
Page
 mus tf ir
stofa llest
a bl i
sht heobj ective soft hepr oject
.Itwouldhe l
pt oa s
kt he
fol
lowi ngque s t
ions:
 Wha ti sitt hattheor ga nizati
oni ss e t
ti
ngoutt oa chie
veori sbe i
nga s
kedt o
achieve ?
 Wi llthes ugge st
edpr ojec tfulf
il
lthe seobjec t
ives?
 Ha vea l
lthea l
terna ti
ve sbe enc onside r
eda ndi sthec hose
noptiont hebe s
tone
available?
 Ha vet hef ulleffec tsoft heproje ct,bothi nsidea ndoutsi
detheor gani
zati
on,
beenc onside r
ed?
i
i.Prepar at
ion ofa  Proj ectove rvie
s( Pr oj
ectbr ief).The br i
efs houldt ake the
objectivess etouti nt hepr evi ousexer ciseandt r
a nsl
atethemintotarget
sa ndgoals.
 
Anyke yc ons trai
ntss houlda ls
obei de nt
ifi
eda nds t
a t
edatthisstage.Thisbrief
shouldbea gre edbyt hes pons or/
clienta ndc ommuni cat
edtothepr oj
ectma nager.
 
Anya mbi guitiesorque r
iess houldbes ortedouta ssoona spossi
ble
. 

Cons
tra
int
sont
heCompl
eti
onofPr
oje
cts

i
. Ti
me

Ourde fi
niti
onofapr oje
ctstat
edthatitwa sana ct
ivit
ywhichhadade f
inedb egi
nninga nd
endingpoint.
 Mos tproj
ectswillbeclose-endedint e
rmsofther
ebe i
ngar equirementfor
compl et
ionbyac ert
a i
npointint i
me. Thi spointma ybetheres
ultofa ne xternalfa
ctor
sucha snewl e
gisl
ati
on,orma ybede rivedf r
omor ganis
ati
onalr
equir
eme nts. Itma yalso
bepa rt
lydeter
minedbyot herconstr
aints.
 Th e
reislikel
ytobesomer el
ationshipbe t
we en
thetimet a
kenforapr oj
ectandi t
scost. At r
ade-offbet
weenthetwoc onstraini
ngf act
ors
ma ythenbene ce
ssary.
 

ii.Re sour c
eAva i
labili
ty
The reislike l
yt obeabudge tforthepr oje
c tandt hiswi l
lclear
lybeama jorconstra i
nt.
 
Cos tconstraint
sma ybes etina numbe rofwa ys,f
ore xa mpleasanove r
allc a
shl i
mi tora s
a 
de tai
ledbudge tbrokendownove ranumbe rofe xpendit
ureheadi ngs.La bourresour ces
i
npa rt
icularma ybeal imitingfactoront hec ompl et
ionoft heproje c
t.
 Int hes hortr unit
i
sl ikel
yt ha tlabourwillbef i
xedins upply. Whi l
s ttheove ra
llre
s ourcea vail
ablema yin
t
he orybes ufficie
nttoc ompletethepr oject
,t her
ema ybedi f
fi
cul ti
esarisingoutoft he
wa yinwhi chthepr oje
c tha sbeenscheduled. Tha tis,ther
ema ybeanumbe rofa ctiviti
es
scheduledt ot akeplacea tthesamet imea ndt hisma ynotbepos siblegivent hea mountof
re
s ourcesa vail
a bl
e. 

4|
Page
 i
ii
.Qua lityf a
c t
ors
Whe t
herthepr ojectdeli
verst hegoodst otheri
ghtqua lit
y. 
The rea retechniqueswhichcan
beusedtoove rcomet hepr oblemsr efer
redtoabove. The seinc l
ude :
 Bu dge t
inga ndt hec orrespondingc ont
roloft hepr ojectbudge tthr
oughbudge t
ary
controlpr ocedures.
 Projectpl anningandc ontr
olt e
chniquessucha sGa nttchartsa ndne t
wor kanal
ysi
s.
 
Ani mpor t
a ntpoi ntt onot ea tthiss t
agei show t heva riousc onstra
intsonpr oj
e c
t
complet
iona r
el ikelytobei nt e
rli
nke dwitheachothe r
. Fore xa mpl e,problemswithti
me
const
rai
ntsorr esourcec onstrai
n t
sma ybeove rc
omebys pendingmor ethroughworking
overt
ime,e mpl oyingmor epe opleorpur chasi
ngbe tte
rma chines. Budge tp r
oblemsma y
haveaknoc k- one ffec
tont hea chievementofde adl
ines. 

I
tisimpor
tantt
oremembe rt
hatwhil
eprojectmana
gementt
echni
quesar
eimport
ant,they
t
endt ounders
tat
ethei mport
anc
eoft heke yres
ourc
e:peopl
e. Inaf actchanging
e
nvir
onmentwhe retasksareofte
ndi ffi
cult
,contr
ove
rsi
alwithuncert
ainoutc
ome s
,
"
peoplemanagement
"skil
lsar
ecal
ledfor
.

NB/ Summa ry:A pr ojects houldpossessident

ifi
abl
egoa lsa ndade finit
estart
ingand
finis
hing point.
 Proj
e c
tgoa lsmus tbede fi
nedc le
arl
y. A us efulc heckl
istc a
n be
de vel
opedinr el
a t
iontos uc c
essc r
it
eria.
 Crit
eri
ama ybeha rdandc onc e
rnedwithwha t
theprojectshoulda chi
eve,ors oftwhe nthe
ywi l
lcoverhowt heprojectshouldprocee
d. 
Thema jorconst
raintsont hec omplet
ionofproject
sareTime ,ResourceAv ai
labi
lit
yand
thene edtoachie
vet herequi r
eds t
andardofperf
ormancefortheproje
ct.
 

5|
Page
 TOPI
C2:PROJ
ECTPLANNI
NG/
PREPARATI
ON

I
ntr
oduc
tion:Thi
sinvol
vesc
oll
ect
ionofda
taa
ndi
nfoont
hepr
opos
edpr
oje
ct.I
tsus
ual
ly
c
onduc
tedbype
opl
ew/t
echni
cala
nda
nal
yti
cals
kil
lsi
nor
dert
ode
ter
minewhe
the
rthe
pr
oje
ctc
anbea
chi
eve
dandt
oes
tabl
is
hwhe
the
rthepr
oje
cti
sfe
asi
ble
.Fe
asi
bil
it
y
i
nvol
vesvi
abi
li
tyof-
thepr
oje
cti
.e
.cos
tsoft
hepr
oje
cta
ndbe
nef
it
soft
hepr
oje
ct.

FEASI
BILI
TYANALYSI
S(FA)
De
fini
ti
ons
:-
Fe
asi
bil
it
yist
heme
asur
eofhowbe
nef
ici
alt
hede
vel
opme
ntoft
hepr
oje
ctwi
llbet
othe
wi
shors
oci
etyort
hewor
kabi
li
tyofapr
oje
ct.
Fe
asi
bil
it
yana
lys
isi
sth
epr
oce
ssbywhi
cht
hef
eas
ibi
li
tya
sme
asur
ed.
I
tsl
ooke
dati
n2wa
ys:
-
i
) Whe
the
rtheor
gani
zat
ionc
anbea
blet
oimpl
eme
nti
ti.
e.t
echni
cala
bil
it
yet
c
i
i) Whe
the
rthepr
oje
ctj
ust
if
iest
hei
nve
stme
nti
.e
.be
nef
it
sandc
ost
s

Fe
asi
bil
it
yispa
rtoft
hepr
oce
ssofi
dent
if
ica
ti
on,pr
epa
rat
iona
nds
ele
cti
on.
Thepur
pos
eofFA.I
stoe
sta
bli
shwhe
the
rthepr
opos
edpr
oje
cti
sat
tr
act
ivee
nought
o
j
ust
if
yamor
ede
tai
ledpr
epa
rat
ionoft
hepr
oje
ct.
Af
terc
las
sif
yingt
hena
tur
eoft
hepr
oje
cta
ndde
fini
nggoa
lsa
ndobj
ect
ive
sthene
xts
tep
i
stoc
onduc
tfe
asi
bil
it
yst
udi
esf
ore
achoft
hea
lte
rna
tivepr
oje
cti
dent
if
ied.

Theba
sicque
sti
ont
oas
keda
re:
-
i
) I
sthepr
oje
ctf
eas
ibl
e?
i
i) Howf
eas
ibl
eist
hea
lte
rna
tive
sunde
rcons
ide
rat
ion?

Thea
im oft
heFA i
stoc
arr
youtapr
eli
mina
ryi
nve
sti
gat
ionwhi
chs
houl
dhe
lpt
o
6|
Page
de
ter
minewhe
the
rthepr
oje
cts
houl
dpr
oce
edf
urt
hera
ndhowi
tshoul
dpr
oce
ed.

Ther
ele
vanc
eoft
hisa
ppr
oac
hwi
llva
rywi
tht
hena
tur
eoft
hepr
oje
cti
ts
elf
.
Themor
econc
ret
ethepr
oje
cti
s,t
hemor
eli
kel
ytha
tthe
sewi
llbee
sta
bli
she
dpr
oduc
esi
n
r
ela
tiont
ofe
asi
bil
it
y.

Howe
verde
spi
teoft
hes
ebe
nef
it
sofFA,nota
llpr
oje
ctsgot
hroughFA.Ev
ent
hos
etha
t
mus
tunde
rgoFA,t
heyma
ynota
llr
equi
redde
tai
le
dFA.The
sewi
llbedi
cta
tedbyt
he
na
tur
eoft
hepr
oje
ct.

Exa
mpl
esoft
hepr
oje
ctst
hatma
ynotunde
rgoFAi
ncl
ude
:-

1) Thes
acr
edc
owpr
oje
ct
Thi
sisonet
hati
sst
art
edbypowe
rfuli
ndi
vidua
lsi
nor
gani
zat
ionorgove
rnme
nt.The
se
t
ype
sofpr
oje
ctsi
sst
art
edt
osa
tis
fyt
hea
gendaoft
hepowe
rfulpe
rsonsbe
hindt
hem.I
n
ma
nyde
vel
opi
ngc
ount
ri
est
her
ear
ema
nypr
oje
ctpr
opos
edbyr
ichpe
opl
es,a
nde
ven
whe
reF.
Aar
econduc
ted,r
esul
tsma
ybei
gnor
ed.

2) Theope
rat
ingNe
ces
sit
ypr
oje
cts
The
yar
ethos
etha
tar
ere
qui
redt
oke
epas
yst
emi
nope
rat
ione
.g.t
hos
epr
oje
ctst
hata
re
me
antt
opr
eve
ntc
ata
str
opheort
hos
ere
qui
redt
ore
spondt
oeme
rge
nci
es.
e
.g.pr
oje
ctst
ore
spondt
ofl
oods
,ri
ske
.gmi
ll
enni
umbug

3) Compe
tit
iveNe
ces
sit
ypr
oje
cts
The
sepr
oje
ctsa
rec
onduc
tedi
n or
dert
o ma
int
ai
n ac
ompe
tit
ivee
dgeove
rot
her
or
gani
zat
ion.e
.g.i
nre
spons
etoac
ompe
tit
orsa
cti
ons
.The
yar
econs
ide
redt
obeof
s
urvi
vali
mpor
tanc
e.Andc
are
fula
nal
ysi
sma
ynotbec
arr
iedout
.
7|
Page
E.
g.:EABLi
nre
spons
etoc
ast
leBe
er.

4) Pr
oduc
tli
neExt
ens
ion
The
sepr
oje
ctsi
sint
ende
dtode
vel
opa
nddi
st
ri
but
epr
oduc
tst
hatc
anbes
aidt
ober
ela
ted
t
oexi
st
ingpr
oduc
ts.Su
chpr
oje
ctsa
rec
arr
iedoute
.g.t
oot
hpa
ste
she
rba
l,Ri
benaa
ppl
e.
5) Compa
rat
iveBe
nef
itMode
l
Thi
siswhe
repr
oje
ctsi
sca
rri
edba
sedons
omec
rit
eri
ae.
g.whe
repr
oje
ctsa
rer
anke
das
good,f
air
e,poor
),r
ankor
derort
hroughpe
err
evi
ew.

Not
e:-De
spi
tet
hef
actt
hatt
hes
epr
oje
ctsa
ret
ake
nwi
thoutmuc
hFA.I
tsa
lwa
ys
i
mpor
tantt
ounde
rta
keFA.
Thi
sishows
omepr
oje
ctsma
ybeunde
rta
kenonl
ytodi
scove
rtha
tthe
yar
enotvi
abl
e.
Howe
ver
,note
ver
ypr
oje
cti
deane
edst
ogot
hroughFA.I
t’
sonl
ythos
ewi
thpr
omi
si
ng
pot
ent
ialt
hatma
ybea
lloc
ate
dre
sour
cesf
orf
eas
ibi
li
tya
nal
ysi
s.The
sepr
oje
ctsma
ybe
i
dent
if
iedt
hroughpr
eli
mina
ry.Sc
ree
ninga
ndpr
e-f
eas
ibi
li
tya
nal
ysi
s

St
age
sofFe
asi
bil
it
yAna
lys
is
1. PRELI
MINARYSCREENI
NG
I
texa
mine
sthene
w pr
oje
ctsi
dea
sinr
ela
tiont
oke
yfa
ctor
s.Ke
yfa
ctor
sde
ter
mine
whe
the
rthepr
oje
cti
swor
kab
lee
.g.ofke
yfa
ctor
sar
eava
ila
bil
it
yofr
aw ma
ter
ial
s,
i
nfr
ast
ruc
tur
e,s
kil
ledl
aboure
tc

2. PRE-
FEASI
BILI
TYANALYSI
S
Looka
ttheba
sisc
rit
eri
afort
hos
epr
oje
ctst
hatha
vepa
sse
dst
ep1t
hep
urpos
eist
o
de
ter
minet
hes
ust
aina
bil
it
yoft
hepr
oje
cti
.ehows
ucc
ess
fuli
twi
llbe
.
Qua
lif
yingpr
oje
ctsa
rer
anke
dandt
hene
val
uat
eds
ubj
ect
ive
lyi
nre
lat
iont
oaf
ewba
sic
c
rit
eri
a:-
8|
Page
  Av
ail
abi
li
tyofa
nade
qua
tema
chi
ner
y
 Pr
oje
ctgr
owt
hpot
ent
ial
 Ma
gni
tudeofi
nve
stme
nt/
inve
stme
ntc
ost
s
 Op
era
tiona
nddi
st
ri
but
ionc
ost
 De
manda
nds
uppl
yfa
ctor
s
 Soc
iala
nde
nvi
ronme
nta
lcons
ide
rat
ions
- Al
sol
ooka
tle
galvi
abi
li
tyi
.e
.noti
ll
ega
l

3. ACTUALFEASI
BILI
TYANALYSI
S/STUDY
Wec
ond
uctade
tai
le
dst
udyt
hatc
ulmi
nat
esi
naf
eas
ibi
li
tyr
epor
ttha
twi
llb
eus
edbyt
he
de
cis
ionma
ker
sforpr
oje
cta
ppr
ais
al
I
tinvol
vesc
oll
ect
iona
nda
nal
ysi
sofda
tai
nthef
iel
d
I
tma
ybui
ldont
hepr
oje
ctpl
ana
ndbe
gini
nanyne
was
sumpt
iona
ndque
sti
ons
.It
s
ge
ner
all
yobj
ect
ivewhe
res
tep1a
nd2a
bove

Ac
ompl
eteFAofapr
oje
ctne
edst
ocove
r7i
mpor
tants
tudya
rea
s
-
Tec
hni
calf
eas
ibi
li
ty:i
ncl
ude
sma
npowe
randt
echnol
ogi
calr
equi
reme
nts
.
-
Economi
cjus
ti
fi
cat
ion:s
ucha
sthec
ost
sandbe
nef
it
s
-
Admi
nis
tra
tive
/ma
nage
ria
l,i
ncl
udi
nge
xte
rna
lli
nka
gesa
ndi
nte
rna
lor
gani
zat
ion
-
Envi
ronme
nta
l,i
ncl
udi
ngpr
ese
ntba
sel
ineda
taa
ndt
hei
mpa
ctoft
hos
eda
ta
-
Soc
iala
ndpol
it
ica
linc
ludi
ngde
mogr
aphi
cda
taa
nds
oci
alne
eds
-
Fina
nci
alf
orf
undi
ngne
edsa
nds
our
ces
-
Mar
ketn
eeds

I
mpor
tan
ceofFA
a
) I
tpr
ovi
desade
cis
ion-
make
rwi
thwa
yst
ore
for
mul
atet
hepr
eli
mina
ryde
sign

9|
Page
 i
ntoi
tsmos
tappr
opr
iat
efor
m.
b) Fe
asi
bil
it
yanda
ppr
ais
alhe
lpgui
det
hei
mpl
eme
nta
tionoft
hepr
oje
ct.The
y
poi
ntoutpot
ent
ialt
roubl
espot
s,a
ndhe
lpma
kec
ont
inge
ncypl
ans
c
) Bye
xami
ningpr
oje
cts
,iti
ncl
udec
rit
eri
aandba
sel
ineme
asur
etoe
val
uat
ethe
pr
oje
ct,pr
ovi
dingt
hepe
ace
make
rbot
hformoni
tor
inga
ndt
hepr
oje
ctdr
ivi
ng
i
mpl
eme
nta
tiona
ndf
ore
val
uat
ingi
tsove
ral
lsuc
ces
sandc
ompl
eti
on

Te
chni
calf
eas
ibi
li
ty
-
Looksa
tte
chni
cala
ndphys
ica
lpa
rame
ter
soft
hepr
oje
ct.
I
taddr
ess
es3i
nte
rre
lat
edque
sti
ons
(
i) I
sthe
rea
dequa
tec
hoi
ceofa
vai
labl
ete
chnol
ogyf
ora
lte
rna
tivede
signpr
opos
es,
c
ons
ide
ringt
hephys
ica
lla
yout
,engi
nee
ringde
signa
nda
vai
la
bil
it
yofr
aw
ma
ter
ial
s?
Howwi
deac
hoi
cedoweha
ve?
(
ii
) Wha
tar
ethec
ost
sofc
ons
truc
tinga
ndope
rat
ingpr
oje
ctf
aci
li
ti
es(
ands
ervi
ces
)
i
ncl
udi
ngma
chi
ner
y,e
qui
pme
ntsa
nds
par
epa
rts
?
(
ii
i) Wha
tar
ethema
npowe
rre
qui
reme
nts
,fr
ompr
ofe
ssi
ona
ltol
abour
,anda
ret
hey
l
oca
llya
vai
labl
e?

Ge
tpe
opl
e wi
thr
equi
si
tes
kil
ls
.It
s mor
eimpor
tanti
nindus
tri
alpr
oje
ctst
han
de
vel
opme
nta
lpr
oje
cts

Ec
onomi
cFe
asi
bil
it
y
I
texa
mine
sapr
opos
edpr
oje
cti
nte
rmsofi
tsne
tcont
ri
but
iont
othee
conomya
ndt
othe
s
oci
et
y.
I
tans
wer
sque
sti
onl
ike
:-

10|
Page
  Wi
llt
hepr
oje
ctspl
anne
dec
onomi
cout
put
sade
qua
tel
yse
rvet
hei
nte
nde
dpr
opos
e?
I
sthepr
oje
ctr
espons
ivet
oana
gentpr
ese
ntora
nti
cipa
tede
conomi
cors
oci
alne
eds
?
 Wi
llt
hes
ervi
cepr
opos
edt
obepe
rfor
medbyt
hepr
oje
ctbea
dequa
tea
ndwi
llt
he
be
nef
it
sjus
ti
fyt
hec
ost
s?
I
tes
pec
ial
lyi
mpor
tantf
orpubl
icpr
oje
ctse
.g.r
oadsc
ons
truc
tion,br
idge
s,f
ewe
rsuppl
y,
wa
ter
,andhe
alt
h.

I
tlooksa
tva
ria
ble
sli
ke:
-
i
) De
manda
nds
uppl
yofa
llpr
oje
ctsout
put
s
i
i) pr
oje
ctsa
bil
it
ytoi
ncr
eas
eempl
oyme
ntwi
th“
mul
ti
pli
er”a
ffe
ctsoni
ncr
eas
ed
pur
cha
sesofgoodsa
nds
ervi
ces

I
tse
ffe
ctoni
ncr
eas
ingpubl
ics
ect
orr
eve
nuei
tsus
eofl
oca
llya
vai
labl
ere
sour
cesi
n
c
oope
rat
epr
oje
cts
,theowne
rswi
llbei
nte
res
tedi
nthef
ina
nci
alr
etur
noft
hepr
oje
ct.
Uponc
ompl
eti
oni
tspos
sibl
etoa
sse
sst
hene
tcont
ri
but
iont
othee
conomi
cands
oci
al
we
lfa
reoft
hec
ommuni
ty.I
tsd
onevi
aac
ompa
ris
onoft
hes
oci
ala
nde
conomi
cbe
nef
it
s
a
gai
nstt
hec
ost
sofc
ons
truc
tiona
ndope
rat
ionoft
hepr
oje
ct.
Cos
t-be
nef
ita
nal
ysi
sisnor
mal
lydonef
ore
acht
echni
cala
lte
rna
tive
The
rei
sthe
ref
orene
edt
oappr
oxi
mat
ethec
ost
sandbe
nef
it
sexpe
cte
dfr
om t
hepr
oje
cts
f
ore
achoft
hepr
oje
ctsye
ars
.
Cos
tsi
ncl
ude c
api
tale
xpe
ndi
tur
e,l
abour
,ma
ter
ial
s,e
qui
pme
nt,qua
lit
ycont
rol
,
ma
int
ena
nce
,ve
hic
leope
rat
ione
tc.
Be
nef
it
sinc
ludes
ervi
ngi
ntr
ans
por
tcos
ts,p
eopl
e,l
abour
,st
imul
at
ionofne
wec
onomi
c
gr
owt
h,ne
windus
tri
es,howho
usi
ng,a
nds
hoppi
ngf
aci
li
ti
es,r
educ
ti
onsi
nac
cide
nts
,and
ot
hert
angi
blea
ndi
nta
ngi
blebe
nef
it
squa
nti
fi
edt
othee
xte
ntpos
sibl
e.
I
ncl
udequa
nti
fi
abl
eandnonqu
ant
if
iabl
ecos
tsa
ndbe
nef
it
s.

11|
Page
Howdowequa
nti
fyr
educ
ti
onsi
nac
cide
nts
,pe
opl
e?

Admi
nis
tra
tive
/ma
nage
ria
lFe
asi
bil
it
y
Al
soknowna
sor
igi
nalf
eas
ibi
li
ty
Looka
tthes
truc
tur
eso
fthef
ir
mimpl
eme
nti
ngt
hepr
oje
ct
I
tma
ynotl
eadt
odi
squa
lif
ica
tio
nofpr
oje
ctbutc
ome
supwi
thwa
ysofi
mpr
ovi
ngt
he
pr
oje
ct.

Eva
lua
tet
hes
tra
tegyoft
hei
mpl
eme
nti
nga
genc
yinc
arr
yingoutpr
oje
ctsc
har
act
eri
st
ic
s.
Al
thoughi
tsme
antt
oas
ses
sf.oft
hiss
tra
tegy,i
tshoul
dconc
ent
rat
eonpr
ovi
ding
i
nfor
mat
iona
ndgui
del
ine
stha
tca
nbeus
edt
oimpr
oveove
ral
lpr
oje
cta
dmi
nis
tra
tion.
Ext
erna
lli
nka
ges
,int
erna
lor
igi
nal
,pe
rsonne
landma
nage
mentpl
an:
-

EXTERNALLI
NKAGES
St
ruc
tur
eofgove
rnme
nta
ndp
riva
teor
gani
zat
ionwi
lldi
rec
tlyori
ndi
rec
tlya
ffe
ctt
he
pr
oje
cts
,envi
ronme
nt.
Thea
dmi
nis
tra
tionf
undi
nga
genc
y,t
her
egul
ati
nga
genc
yandt
hehuma
nadvi
sor
y
or
gani
zat
iont
hatpr
ovi
depol
it
ica
l,t
echni
cala
ndot
hert
ype
sofr
appor
tass
eenon
c
ons
truc
ti
ons
it
es.

I
NTERNALORGANI
SATI
ONS
I
nte
rna
lor
gani
zat
ioni
sthea
ctu
aloft
hei
mpl
eme
nta
tionuni
t
Thes
tudys
houl
dde
ter
minewhe
the
rthepr
opos
edor
gani
zat
ionc
ani
mpl
eme
ntt
hepr
oje
ct
s
ati
sfa
cto
ril
yis
sue
sinc
lude
:-
I
sitc
ompr
ehe
nsi
vee
nough?
I
sita
ppr
opr
iat
eforc
arr
yingoutpr
oje
ctgoa
ls?

12|
Page
 I
sitf
lexi
blee
nough?
I
sint
erna
lco
mmuni
cat
ionwe
lle
sta
bli
she
danda
rel
ine
sofa
uth
ori
tyc
lea
rly
de
fine
d?

MANAGEMENT
I
t’
sthes
pec
ifi
edma
nage
mentp
lanoft
hepr
oje
ct
I
ssue
sinc
lude
:-
 Ar
esc
hedul
esa
ndne
twor
kss
uff
ici
ent
lywor
kedout
?
 Wha
tar
ethec
ont
rolt
ech
nique
sandme
thodsofs
upe
rvi
si
on?
I
sthee
nti
rema
nage
mentpl
ani
nte
gra
teds
otha
tthepr
oje
ctma
nage
mentc
an
c
ont
rola
lla
spe
ctsoft
hepr
oje
ct?
I
sthema
nage
mentoft
hepr
oje
ctf
ormul
ate
dwe
lle
nought
oens
uret
hatt
hepr
oje
ct
wi
llbewe
llc
oor
dina
teda
ndc
ont
rol
led?
 Do
est
hepl
anpr
ovi
def
orc
ont
inge
nci
es?

PERSONNEL
I
t’
stheke
yis
suei
nadmi
nis
tra
tio
nfe
asi
bil
it
y
I
tlooksa
tcompe
tenc
yanda
ppr
opr
iat
ene
ssofpe
rsonne
l
I
teva
lua
tesi
nte
rns
hipl
ikeJ
DS,qua
lif
ica
tionsa
rea
ppr
opr
iat
eandt
hatt
heya
rewa
ter
ed
outc
ompl
ete
ly.
Ava
ila
bil
it
yofne
ces
sar
ype
rson
nel
The
nthei
mpa
ctone
ver
yar
eaofapr
oje
ctma
debyt
hec
hoi
ceoff
ore
ignorl
oca
l
pe
rsonne
l-notonl
yinadur
ati
ona
ndi
mpl
eme
nta
tionbuta
lsoi
npr
eli
mina
ryde
sign,
t
echni
cala
nal
ysi
sandge
ner
alc
ons
ult
ing–s
houl
dbee
xami
ned.

Thea
nal
ysi
sshoul
dque
sti
onwh
ethe
rthe
rei
sade
qua
tepr
ovi
si
onf
orhi
ri
nge
xpe
rt.

13|
Page
Envi
ronme
nta
lFe
asi
bil
it
y
Wel
ooka
t2e
xpe
rts
:-
1howt
hee
nvi
ronme
nte
xpe
rtst
hepr
oje
ct
2howt
hepr
oje
ctwi
lla
ffe
ctt
hee
nvi
ronme
nt

I
senvi
ronme
nts
uit
abl
efort
hes
ucc
essoft
hepr
oje
ct?
I
ssoi
lqua
lit
yappr
opr
iat
eforpr
opos
edc
rops
?
I
swa
ters
uff
ici
ent
I
sdr
aina
gea
dequa
te
I
sthe
rea
dequa
tes
unl
ight
?
I
sthec
lima
ter
ight
Wha
tist
hepr
oje
ctsi
mpa
ctont
hee
nvi
ronme
nt?
 Ef
fec
tons
oile
ros
ion,wa
ters
uppl
ies
,wi
ldl
if
e
 Pot
ent
ialt
ode
ple
tenonr
ene
wabl
ere
sour
ces
 Cr
eat
eadve
rsemi
croc
lima
tat
icc
hange
s
 Pol
lut
ewa
ter
,ai
r,l
and

Soc
ial
/pol
it
ica
lFe
asi
bil
it
y
Wha
tist
hei
mpa
ctofs
oci
al
/pol
it
ica
lst
ruc
tur
esa
ffe
ctont
hepr
oje
cta
ndhowpr
oje
ctwi
ll
a
ffe
ctt
hes
oci
al/
pol
it
ica
lst
ruc
tur
es?
Looka
tfor
mals
oci
al/
pol
it
ica
lst
ruc
tur
esa
ndf
orma
lone
s.

St
art
swi
thc
onduc
tingas
tudyont
heba
sel
inee
conomi
cands
oci
al.Da
taont
he
c
ommuni
tyf
orwhi
cht
hispr
oje
cti
sint
ende
disa
stoge
tthege
ner
alpr
ofi
leoft
hea
rea
s
r
esi
dent
sands
houl
dinc
luded
emogr
aphi
cinf
orma
tions
ucha
spopul
ati
onl
eve
land
di
st
ri
but
ion,e
mpl
oyme
ntpa
tte
rn,l
eve
landdi
st
ri
but
ionofy,e
duc
ati
ona
ndh
ous
inga
nd
14|
Page
he
alt
hsi
tua
tions

Wea
lsol
ooka
ttheva
riouss
take
hol
der
soft
hepr
oje
cta
ndhowt
heya
rea
ffe
cte
dbyt
he
pr
oje
ct.Thes
take
hol
der
sma
ybec
las
sif
ieda
s:-(
5)
 Cl
ientga
ps-
owne
rs
 Us
esga
ps
 Ag
ent
s-ma
nage
rs
 Vi
cti
ms-
suf
fi
x
The
irpol
it
ica
lst
ruc
tur
eiss
tudi
edbyf
ocus
ingont
hede
cis
ion ma
kingpr
oce
ssa
nd
unde
rst
andi
ngt
hepol
it
ic
alr
ela
ti
ons
hipt
ore
giona
landna
tiona
lgove
rnme
ntsa
sas
ses
sthe
pol
it
ica
laut
onomy.

I
tsa
lsode
scr
ibe
sthea
rea
sinf
orma
landf
orma
lpol
it
ica
lor
gani
zat
iona
nds
pec
ifi
est
he
l
oca
lor
dina
nce
s,z
oni
ngr
equi
reme
ntsa
nds
tat
ust
hatwi
lla
ffe
ctt
hepr
oje
ct.
Fi
nal
lyi
nfor
mat
ionmus
tbega
the
redont
heopi
nionsa
nda
tti
tudeofr
esi
dent
sandl
eade
rs
t
owa
rdst
hepr
oje
ct.

Fi
nanc
ialFe
asi
bil
it
y
Addr
ess
est
heque
sti
on:
-
1)Wha
tar
etheope
rat
iona
ndope
rat
ingc
ost
soft
hepr
oje
ct?
2)Wha
tar
ethes
our
cesoff
undsa
nddr
aw-
downs
che
dul
esa
nda
ver
aget
hey
Suf
fi
cie
ncyt
ocove
rthec
ost
sofa
cti
vit
iesa
ndi
mpl
eme
nta
tion?
Wha
tar
ethea
lte
rna
ti
vef
ina
nci
ngs
che
mesf
romot
herf
undi
ngs
our
ces
?
3)Wha
tist
hepr
oje
cte
dca
shf
lowoft
hep
roj
ect
?
Towha
text
enta
rene
ces
sar
ybe
comi
ng s
che
dul
edt
ome
ett
her
unni
ngde
fea
tsa
t
a
cti
vat
ion?Hows
oonwi
lli
nit
ialr
eve
nue
scove
rpa
rtora
llofope
rat
ingc
ost
s?

15|
Page
 4)I
sthe
rea
nade
qua
tea
ccount
ings
yst
emt
opr
ovi
der
egul
arba
lanc
eshe
ets
,cos
ts,
de
bts
ervi
cings
che
dul
esa
ndot
herf
ina
nci
alr
epor
ts?
5)Wha
tar
ethepr
ovi
si
onsf
orc
ompl
et
ioni
nve
stme
nta
ndot
herme
ansofr
ecove
ry
i
nve
stme
nta
ndope
rat
ingc
ost
?
Fi
nanc
ials
tudyi
sconc
erne
dast
o
 Whe
the
rthepr
oje
ctc
ans
ucc
eedwi
tht
hea
mountofmone
yst
ate
dint
he
pr
opos
al
 Whe
the
rpr
oje
cti
sexpe
cte
d(i
fint
hepr
iva
tes
ect
or)t
oshowaI
I
Ma
rke
tFe
asi
bil
it
y
Wec
oll
ecti
nfor
mat
iont
hathe
lpsusde
ter
minewhe
the
rtheout
put
swi
lls
old
,thet
arge
ted
ga
ps,t
hec
ompe
tit
ionl
eve
ls,ou
tputofc
ompe
tit
ionse
tc.
Thi
she
lpsust
oca
tert
hede
mandpot
ent
ialf
orwhi
cht
hepr
oje
cti
sbe
inge
sta
bli
she
d

FEASI
BILI
TYREPORT
Af
terf
eas
ibi
li
tys
tudi
esha
veb
eendonea
ndc
ompl
ete
d,t
heyne
edt
obepr
ese
nte
dina
s
ingl
edoc
ume
nt.I
tspr
ese
nte
dtot
hes
take
hol
der

Ther
epor
tha
sthef
oll
owi
ngpa
rts
/cont
ent
s:
-
1) Thei
ntr
oduc
tionc
hapt
ers
houl
dcl
ear
lyl
is
tthegoa
lsa
ndobj
ect
ive
soft
he
pr
oje
ct=TI
TLEOFTHEPROJ
ECT
2) EXECUTI
VESUMMARY i
ncl
udi
ngt
ermsofr
efe
renc
e,br
iefd
esc
ript
ionof
e
xer
cis
e,ke
yfi
ndi
nga
ndr
ecomme
nda
tions
3) PROJ
ECTDEFI
NITI
ONc
ove
ringg
oal
sandobj
ect
ive
s
4) GENERALB/
GROUNDANDI
NTRODUCTI
ONwi
thi
nout
li
nede
scr
ipt
ionof
t
heopt
ions
/al
ter
nat
ive
s,ge
ner
ali
nfor
mat
ione
.g.a
nal
ysi
sofi
ndus
try,r
est
ruc
tur
e
ofpr
oje
ct,de
scr
ipt
ione
tc.

16|
Page
 5) CLEAR DEFI
NITI
ON OF SOCCESS CRI
TERI
A OR FEASI
BILI
TY
CRI
TERI
A
6) FI
NDI
NGS OF t
heFA onma
rke
ti
nga
nal
ysi
s,optr
equi
reme
nts
,ope
rat
ing
r
equi
reme
ntsa
ndc
ost
s,t
echni
cala
nal
ysi
s,or
igi
nala
nal
ysi
s,f
ina
nci
ala
nal
ysi
s,
e
conomi
cana
lys
is, pol
it
ica
land s
oci
ala
nal
ysi
s,e
nvi
ronme
nta
limpa
ct
a
sse
ssme
nte
tc
7) PRELI
MINARYCOMPLI
ANCE-
howt
hepr
oje
ctme
etsorc
ompl
ie
stoa
llt
he
c
rit
eri
a
8) PLANFORTHEMANAGEMENToft
hepr
oje
cti
ncl
udi
ngi
mpl
eme
nta
tion
9) CONCLUSI
ON

17|
Page
 CHAPTER3:PROJ
ECTEVALUTI
ON/
APPRAI
SAL&SELECTI
ON
I
ntr
oduc
tion:Af
tera
ppr
ais
ing,t
hepos
sibl
ethepr
oje
cts
,anone
-vi
abl
epr
oje
ctma
yre
mai
n,
t
hes
epr
oje
ctsa
rer
anke
dsoa
stoc
hoos
etheone
stobei
mpl
eme
nte
dcos
t.Thi
sisduet
o
s
car
cit
yofr
esour
cesf
orpr
oje
cti
mpl
eme
nta
tion.Att
hiss
tagef
urt
hera
nal
ysi
soft
he
pr
oje
cti
scove
redout
.Whe
reac
rit
ic
alavi
ewi
sdonebyat
eam ofi
nde
pen
dente
xpe
cts
whoa
renoti
nvol
vedi
nfe
asi
bil
it
ybodi
esdonee
arl
ies
t.Thi
spr
ovi
desa
nop
por
tuni
tyt
o
r
eexa
min
eeve
rya
spe
ctoft
hepr
oje
ctbe
for
efundsr
ais
ingc
ommi
tt
ed.De
vel
opme
nt
budge
tingma
ybeunde
rta
ken

3.
1 Cos
tBe
nef
itAna
lys
isa
ndot
herAppr
ais
alTe
chni
que
s
Af
terf
eas
ibi
li
tys
tudi
esa
ref
ina
liz
edwema
yha
ves
eve
ralpr
oje
ctst
hata
revi
abl
e.The
se
vi
abl
epr
oje
ctswi
llbec
ompe
ti
ngf
ort
hes
ames
car
cer
esour
ce.Thuspr
oje
cts
ele
cti
on
e
nabl
esust
ochoos
ethebe
sta
lte
rna
tiveort
opr
act
icet
hepr
oje
cts
.(Ra
nk)
PROJ
ECTSELECTI
ON:
-
I
t’
sthepr
oce
ssbywhi
chwei
dent
if
ythepr
oje
ctst
obei
mpl
eme
nte
dba
sedont
he
pr
ior
it
iesoft
hes
take
hol
der
s.I
nor
dert
ochoos
ethepr
oje
cts
,wema
keus
eofmode
lst
hat
ma
ybequa
lit
ati
veorqua
nti
ta
tiveorbot
h.
Whi
che
vermode
lswec
hoos
e,t
heyne
edt
ome
eta
tle
asts
omeba
sicc
rit
eri
a.Thec
rit
eri
a
ofc
hoos
ingas
ele
cti
onmode
lis
:-
1) Re
ali
sm
Themode
lchos
ens
houl
dre
fle
ctt
her
eal
it
yoft
hema
nage
rs’de
ema
nds
it
uat
ion.Thi
swa
y
wec
anha
veac
ommonba
sisf
orc
ompr
ise
sonofpr
oje
cts
2) Ca
pabi
li
ty
Thi
smode
lchos
ens
houl
dal
lowt
hema
nage
rtor
ema
inf
ocus
edont
heor
gani
zat
ion
a
bil
it
iesa
ndgoa
lsi
tshoul
dal
soe
nabl
ethema
nage
rtoc
ons
ide
rthel
ike
lyr
isksbe
nef
it
s
a
ndc
ost
s.Andpr
ovi
deawa
yofc
ons
ide
ringt
hemul
ti
plec
hange
sint
hee
nvi
ronme
nt.
3) Fl
exi
bil
it
y
18|
Page
Themode
lshoul
dbea
blet
oac
commoda
tec
hange
swi
thi
nthee
nvi
ronme
nt.I
tshoul
dbe
s
elfa
djus
ti
nga
ndr
espons
ivet
othec
hange
sint
hepr
oje
ctse
nvi
ronme
ntwi
ths
pee
dand
a
ccur
acy
e
.g.i
tshoul
dbee
asyt
oca
rryou
tea
cha
nal
ysi
s
4) Ea
seofus
e
Themode
lshoul
dbee
asyt
ous
eandunde
rst
and.I
tshoul
dbepos
sibl
etoi
nte
rpr
ett
he
r
esul
tswi
thoutunne
ces
sar
il
ylooki
ngf
ors
pec
ial
is
tint
erpr
eta
tion.I
tshoul
dal
sot
akea
s
hor
tert
imet
oexe
cut
e.
Al
sor
ela
test
othec
asewi
thwh
icht
her
ele
vanti
nfor
mat
ioni
sre
qui
red.

5) Cos
t
Thec
ostofda
taga
the
ringa
ndmode
lli
ngs
houl
dbel
ow,i
.e
.Thec
ostofc
hoo
singt
he
pr
oje
cts
houl
dber
eas
ona
blei
nre
lat
iont
othebe
nef
it
sofpr
oje
cts
ele
cti
on
6. Ea
seofc
omput
eri
sat
ion
I
tshoul
dbee
asyt
oaut
oma
te
The
rea
re2t
ype
sofmode
lse
lec
tion
i
) Nume
ric
i
i) Nonnume
ric
-
I
ntr
oduc
tiont
ocos
t-be
nef
ita
nal
ysi
s
Appr
ais
ale
nta
il
seva
lua
tingqua
nti
tat
ive
lywhe
the
rtof
oll
owagi
venc
aus
eofa
cti
on.Cos
t
be
nef
ita
nal
ysi
sist
hewe
ighi
ngs
cal
eappr
oac
htod.
m.a
llt
hepl
use
s(c
ashi
nfl
owsa
nd
ot
heri
nta
ngi
blebe
nef
it
s)ar
eputonones
idea
nda
llt
hemi
nus
es(
cas
tsa
nddi
sadva
nta
ges
)
a
reputont
heot
hers
ideoft
hes
cal
ewhi
che
veri
she
avi
erwi
ns
Cos
tbe
nef
ita
nal
ysi
sisat
oolf
orj
udgi
nge
ffi
cie
ncye
spe
cia
llyi
nthepubl
ics
ect
or.
Be
caus
eofma
nyf
ail
ure
sandwa
sta
gei
nthi
spa
st,mos
tins
ti
tut
ionsi
ncl
udi
ngc
ivi
lsoc
iet
y
a
ndde
vel
opme
ntpa
rtne
rsi
nsi
stt
hathepubl
icpr
oje
ctsne
ede
dcur
rent
lybys
oci
etys
houl
d
bee
xec
ute
dbya
bandoni
ngl
essus
efulpr
oje
cts
.
19|
Page
CBAof
fer
sloc
alde
cis
ionma
ker
sagoods
our
ceofc
ouns
el
CBAe
sti
mat
esa
ndt
ota
lsupt
hee
qui
val
entmone
yva
lueoft
hebe
nef
it
sandc
ost
stot
he
c
ommuni
tyofpr
oje
ctst
oes
tabl
is
hwhe
the
rthe
yar
ewor
thwhi
le.
CBApr
ovi
dest
hef
ir
mwor
kfori
dent
if
ying
Ke
ypa
rame
ter
s,l
iket
her
atea
twhi
cht
odi
scounta
ndt
hewa
yst
ore
cogni
zei
nhe
rent
unc
ert
ain
tie
sanda
lsowa
yst
ode
alwi
thunc
ert
aint
iesa
ndr
isks
CBAi
sus
edt
o:-
(
i) Choos
eamongar
angeofa
lte
rna
tive
s
(
ii
) Ma
kec
ompa
rabl
eorc
ompa
ris
onsofpr
oje
ctsofdi
ff
eri
ngl
engt
hs
(
ii
i) Toi
dent
if
yins
tanc
eswhe
rec
ost
sandbe
nef
it
spl
acei
dent
if
iabl
egr
oupsa
t
s
pec
iala
dva
nta
geord
isa
dva
nta
gespos
it
ions
.
Compone
ntsofCBA
The
rea
re3:
-
1. Te
chni
calI
ssue
s
SomeofCBAha
venotbe
enwhol
lyr
esol
vede
vennowf
ort
her
udi
ment
aryt
echni
que
s
us
edt
ome
asur
edi
ver
sebe
nef
ita
ndc
ost
sins
hil
li
ngt
eems
2. Equi
typr
oje
cts
Thef
actt
hat
,tos
ome
,de
vel
opme
ntpr
oje
ctsf
allpr
ope
rlyunde
rther
eal
iza
tio
nofe
the
ror
r
athe
rtha
nec
onomi
cs.
Cos
tBe
nef
itAna
lys
isa
ndTi
me
I
nCBAa
nal
ysi
sweme
asur
e.Thene
tbe
nef
it
sofpr
oje
ctsorpol
ici
est
hatge
ner
atec
ost
s
a
ndbe
nef
it
sar
eape
riodoft
ime
.Wi
thc
ost
sandbe
nef
it
sof
tenoc
cur
ri
ngi
ndi
ff
ere
ntt
ime
pol
ls
.Butas
hil
li
ngofc
ost
sorb
ene
fit
ste
nye
sfr
omt
oda
yisnotdi
rec
tl
ycomp
ara
blet
oa
s
hil
li
ngc
ost
sorbe
nef
it
stoda
y.
Weus
edi
scount
inga
sac
ommo
nde
nomi
nat
ionnf
ort
hepds
.
I
nputva
lue
sint
oCBA
Di
scount
ingr
ate
20|
Page
  Ra
tei
sinf
lue
nce
dbyf
act
orsl
ikei
nte
res
tra
tes
 Fut
urer
ate
sofe
conomi
cgr
owt
h
 Fut
urer
ate
sofpopul
ati
ongr
owt
h
 Fut
urer
ate
sofi
nfl
ati
on
 Fut
urer
ate
soft
echnol
ogi
calc
hange
Be
nef
it
s
I
tma
yin
clude
:-
 Moni
tor
ingva
luef
orma
rke
tedgoods
 Moni
tor
ingva
luef
orhowma
rke
teddi
rec
tl
yus
edgoods
 Moni
tor
ingva
luef
orhowma
rke
tedpa
ssi
vel
yus
edgoods
 An
dgoodss
our
cesf
orwh
ichmoni
tor
ingr
athe
rca
nnotbeme
asur
ed

EXAMPLES:
Cos
ts
I
ncl
ude
:-
 Moni
tor
ingva
luef
orma
rke
tedi
nputgoods
 Moni
tor
ingva
luef
ornonma
rke
teddi
rec
tlyus
edgoodst
hatmus
tgi
venu
p
 Moni
tor
ingva
lue
sfornonma
rke
tedpa
ssi
vel
yus
edgoodst
hatmus
tbegi
venup
 Co
stsf
orwhi
chmoni
tor
ingva
lue
sca
ntbeme
asur
ed
Be
caus
eofunc
ert
aint
iesi
nes
ti
mat
ionofva
ria
bleva
lue
sit
’si
mpor
tantt
hatac
ost
be
nef
ita
nal
ysi
sdoe
sn’
tpr
ese
ntas
ingl
enumbe
rast
hes
olee
sti
mat
eofNPV.
Se
nsi
ti
vit
yana
lys
iss
houl
dbec
onduc
tedt
oil
lus
tra
tehowt
her
esul
tsc
hangewi
th
di
ff
ere
nta
nal
yti
calc
hoi
cesa
ndwi
thva
ria
tioni
ntheunc
ert
ainl
eve
lsofke
ycos
tsa
nd
be
nef
it
sande
vent
hedi
scountr
ate
.
Soc
ialc
ostBe
nef
itAna
lys
is(
SCBA)
SCBAore
conomi
cana
lys
isi
sal
sous
edt
ode
scr
ibepubl
icpr
oje
cts
.It
’same
thodol
ogy
21|
Page
 de
vel
ope
dfore
val
uat
ingi
nve
stme
ntpr
oje
ctsf
romt
heptofne
woft
hes
oci
etyor
e
conomya
sawhol
ee. t3rds
g.Gov ect
or(
Civi
lsoc
iet
y,NGOse
tc)
Appr
oac
hest
oSCBA)
The
rea
re2a
ppr
oac
hes
(
1)Thel
it
tl
eMi
rrAppr
oac
h(L.
M Me
thod)whi
chi
scommonl
yadopt
edbyt
heWor
ld
Ba
nk.
(
2)TheUNI
DO(
U.NI
ndus
tri
alDe
vel
opme
ntOr
gani
zat
ion)Me
thod.
The2me
thodsa
res
imi
lari
nmos
tre
spe
ctse
xce
pti
nthef
f3wa
ys:
-
a
) TheUNI
DOAppr
oac
hme
asur
esc
ostsa
ndbe
nef
it
sint
ermsofc
ons
umpt
ion
whe
rebeLM a
ppr
oac
hus
esi
nte
rna
tiona
lpr
ice
sal
soc
all
edbor
derpr
ice
s
b) TheUNI
DOAppr
oac
hme
asur
esc
ost
sandbe
nef
it
sint
ermsofc
ons
umpt
ion
whe
rebeLM me
asur
est
hemi
nte
rmsofunc
ommi
tt
eds
oci
ali
ncomeors
avi
ngs
.
c
) TheUNI
DOAppr
oac
hus
esas
tepbys
tepa
nal
ysi
stha
tfoc
use
sone
ffi
cie
ncy,
s
avi
ngsa
ndr
edi
st
ri
but
ionwhi
leLM me
thodvi
ewsa
llt
hes
etoge
the
r(e
ach)or
one
.
Whi
che
vera
ppr
oac
hus
edt
hes
tepsa
ret
hes
ame
?
St
epsi
nSCBA/
CBA
i
) I
dent
if
ythet
arge
tpop
ula
ti
onwhoa
ret
obe
nef
itf
romt
hepr
oje
ctwh
ata
ret
he
s
oci
o,e
conomi
ccondi
ti
onsw/
othep
roj
ect
?Howma
nya
ret
hey?Wha
tar
ethe
pe
cul
iar
it
ie
sofe
achr
egi
on?
i
i) I
dent
if
ycos
tandbe
nef
iti
temsoft
hepr
oje
ct
i
ii
) Va
luet
hei
te
msofc
osta
ndbe
nef
it
sinmone
tar
yte
rms
i
v) Di
scount
ings
oast
oge
tthepi
votoft
hec
ost
sandbe
nef
it
s.
v) De
cis
ionma
kingi
.e
.whe
the
rthepr
oje
ctj
ust
if
iesa
lloc
ati
onofr
esou
rce
s
vi
) Se
nsi
ti
vit
yana
lys
ist
ode
ter
mines
ele
cti
onorr
eje
cti
onofpr
oje
cti
nca
seof
c
hange
sins
omeoft
hea
ssumpt
ionsunde
rlyi
ngt
hepr
oje
ct.
vi
i) Me
asur
eme
ntoft
hepr
oje
ctsi
mpa
ctont
het
arge
tpopul
ati
on
22|
Page
Pr
inc
ipl
esofCBA
i
) Commonuni
tofme
asur
eme
ntofBe
nef
it
sandc
ost
s-us
ual
lymone
y
i
i) CBAva
lua
tionss
houl
dre
pre
sentc
ons
ume
rsorpr
oduc
esva
lua
tionsa
sre
vea
led
byt
hei
rac
tua
lbe
havi
our
-be
nef
it
sandc
ost
sshoul
dre
fle
ctpr
efe
renc
esr
eve
ale
d
byc
hoi
ceswhi
chha
vebe
enma
de.Fore
.g.i
fadua
lcove
ragewa
yisc
ons
truc
ted
i
mpr
ove
ment
sint
rans
por
tat
ionf
reque
ntl
yinvol
ves
avi
ngt
imea
ndr
educ
tionof
l
ossofl
ive
stoa
cci
den
ts
E.
g.howdoweme
asur
ethev
alueofl
if
eandt
hatoft
ermsba
sedf
romt
hisdua
l
c
ove
rage
?The
rec
anonl
ybee
sti
mat
eda
spe
opl
esome
ti
mest
aker
isks
.
i
ii
) CBAi
nvol
vesapa
rti
cul
ars
tudya
reai
mpa
ctsofapr
oje
cti
.e
.
de
fine
dforapa
rti
cul
ars
tudya
re,bei
tac
ity,r
egi
on,s
tat
eort
hewor
ld
i
v) Be
nef
it
sar
eus
ual
lyme
asur
edbyma
rke
tchoi
ces
:-
Pe
opl
enor
mal
lypur
cha
sea
tma
rke
tthe
yre
vea
ltha
tthet
hingst
heyva
rye
acha
tle
ast
a
sbe
nef
ici
alt
othe
mast
hemone
ythe
yre
linqui
sh
v) Thea
nal
ysi
sofapr
oje
cts
houl
dinvol
veac
ompa
ris
onofawi
thVSwi
thout
vi
) Doubl
ecount
ingofBe
nef
it
sorc
ost
smus
tbea
voi
ded
vi
ii
) De
cis
ionc
rit
eri
aforpr
oje
cts
houl
dbes
pec
ifi
ede
.g.
NPVpos
it
ive
-Ac
cept
NPVne
gat
ive
-Re
jec
t
NPVZe
ro-
Indi
ff
ere
nt
APPRAI
SALCRI
TERI
A
Ena
ble
sust
oge
ttheoptva
lueoft
hepr
oje
ctde
ter
mine
dwhe
nle
ngt
hofa
nyopt
pr
oje
ctac
ons
truc
tedf
romi
tsc
ost
s
Onc
eaoptva
luei
sde
ter
min
ed,Ae
achoptpr
oje
ctt
hent
hes
epr
oje
ctsund
er
c
ons
ide
rat
iona
rer
anke
dac
cor
dingt
othe
irva
lue
Cons
ide
rat
ionsf
ort
hea
ppr
ais
alme
thodha
vet
ota
kei
ntoa
/c3t
hings
:-

23|
Page
 I
ncor
por
atet
het
imev
alueofmone
y
 Re
fle
cta
llf
utur
ecos
tbe
nef
itf
lows
I
ncor
por
ater
iski
ntot
hec
alc
ula
tionoft
heva
lue
Me
thodsofAppr
ais
ali
ncl
ude
:-
1.
) Pa
yba
ckme
thod(
PBP)
2.
) Ne
tpr
ese
ntva
lue(
NPV)
3.
) Be
nef
it
-cos
tra
tio(
BCR)
-Pr
ofi
tabi
li
tyi
nde
x(PI
)
4.
) I
nte
rna
lRa
teofRe
tur
n(I
RR)
5.
) Ac
cor
dingr
eci
teofr
etur
n(ARR)

APPRAI
SALTECHNI
QUES

Anorgani
zat
ionmayrece
ivese
vera
lproposa
lsfori
nvestme ntpr
ojec
ts.Itisnece
ssar
yfor
t
hecompanytohavesomeproc
eduret
or a
nkinvest
mentpr oposal
s,andbea bl
etochoos
e
t
hepropos
al(
s)whic
his(are
)li
kel
ytoproveofgreat
estbene f
itt
otheorganiza
ti
on.

Whe neveronewishestoinvestinane wprojectorane wproduct,iti

simport
anttoknow
howmuc htoexpe
c tinret
urna nd,therefor
e,profi
ts
.Howe ver,t
hisisnotal
waysas i
mple
ma t
ter
.Whe nabusinesshasspa r
ef undsforinvest
me nt
,therewillbemorethanoneide
a
foravariet
yofnewpr oducts,ornewpr oje
cts
, andthechoicehastobema deastowhich
willbethemostprofit
able.

Thedeci
si
ontoinve
sti
sof
tenba
sedont
hre
ema
jorf
act
ors
,as
sumi
ng,ofc
our
se,t
hat
fi
nanc
eisava
ila
ble:

 Theinvest
ors
’bel
iefa
boutthefutur
e.Thi
se mpha
siz
est
hei
mpor
tanc
eofa
ccur
ate
for
ecast
ingofbot
hint
erna
la n
de xte
rna
lfa
ctors
;

 Thealt
ernat
ive
sava
ila
bleinwhicht
oinve
st,he
ncewhi
choft
hec
ompe
tin
ginve
stme
nt
oppor
tunit
iesi
smostf
avoura
ble
;

 Thei
nves
tor
’sa
tti
tudet
oris
k.Retur
nisc
onve
nti
ona
llye
xpe
cte
dtobei
nve
rse
ly
pr
opor
ti
onal
lyt
otheris
kinvol
ved.

24|
Page
 Me
tho
dsofI
nve
stme
ntAppr
ais
al

Amongt
hema
nyme
thodsus
edf
ori
nve
stme
nta
ppr
ais
al,weha
vet
hef
oll
owi
ng:

 Accounti
ngRa teofRetur
n(ARR)met
hod.
 PaybackPeri
odMe t
hod
 Netprese
ntvalue(NPV)me t
hod
 Int
erna
lRa t
eofRe tur
n( I
RR)met
hod.

Ac
count
ingRa
teofRe
tur
n(ARR)

De
fini
ti
on:

ARR=t
her
ati
oofa
ver
agepr
ofi
ts
,af
terde
pre
cia
tion,t
othec
api
tali
nve
ste
d.

However
,the
rear
enume
rousva
ria
tionsa
ndi
nte
rpr
eta
tionst
othi
sde
fini
ti
onf
ort
he
f
oll
owingrea
sons
:

- Pr
ofi
tsma ybebe
for
eoraft
erta
x.
- Capi
tali
nvest
edmaymeantheini
ti
alcapi
tali
nvest
mentort
hea
ver
agec
api
tali
nve
ste
d.
- Capi
talmayormaynoti
ncl
udewor ki
ngcapit
al.

Ca
lcul
ati
onofARR:

Capi
talinvestedcoul
dbet
ake
ntome
ane
ithe
r
(
i) I nit
ialcapi
tal
,or
(
ii
) Av er
a gecapi
tal

Adva
nta
ge:
(
i) I
tiss
impl
etoc
alc
ula
te.

Di
sadva
nta
ges
:

25|
Page
(
i) Do e
snota l
lowf ortimingofout fl
owsa ndinfl
ows .i.
e.proj
ect
sma ybera nked
equal
lye veni fther
ea recle
a rdiff
erencesinti
mi ngs;
(
i) Us
i esa sme as ureofr et
urnthec onceptofaccountingprofi
t.Pr
ofithassubjec
tive
ele
me nt,issubj ecttoa cc
ountingc onventi
onandi snotasappr
opriat
efor
i
nve s
tme nta ppr ai
salpurposesa st
heCa s
hflowsge nerat
edbytheproje
ct;
(
ii
i) Thereisnouni ver
sallyacceptedme thodofcalculat
ingARR.

Pa
yba
ckPe
riodMe
thod

Thisi
nvol
vescalc
ulat
ionofthenumberyearsrequi
redtoretur
ntheori
ginalinves
tment
fr
omne tc
ashfl
ows .Theusualdec
isi
onruleistoaccepttheproj
ectwi
ththes hor
tes
t
payba
ckperi
od,defi
nedastheti
meittake
sa ninvest
me nttogener
ates
uffi
c i
entret
urnst
o
paybackt
heorigi
nalinve
stmenti
nfull
.

Exampl e
As s
umet hataf
irmisc
onsideri
ngtwoproj
ect
seachre
qui
ri
nganinves
tmento
f
Shs.100,
000.Thefi
rm’sma r
ginalc
ostofc
api
tali
s10%.Thenetcas
hflowsfor
invest
me nt
sAa ndBareshownbe l
ow.

YEAR
Cash 1 2 3 4 5 6
f
low
A($) 50,
000 40,
000 30
,000 10,
000 1,000 1, 000
B($) 10,
000 20,
000 30
,000 40,
000 50,000 60,000

Usingt
hepa
yba
ckpe
riodme
thod,de
ter
minewhi
choft
hes
einve
stme
ntst
hef
ir
mshoul
d
adopt
.

Sol
uti
on

Pr
oje
ctA:

Pr
oje
ctB:

Us
ingt
hepa
yba
ckpe
riodme
thod,pr
oje
ctA

26|
Page
Adva
nta
ges
:

(
i) Si mpl etoca l
cul
atea ndunders
tand;
(
ii) Us espr ojectcas
hf l
owsr at
herthana c
count
ingprof
it
sandhe nc
eismoreobje
ctive
ly
bas ed;
(
iii
) Fa vour squickret
urnpr oj
ect
s,whi c
hma yproducefa
ste
rgrowthfort
heCompa ny
ande nhanceliqui
dity;
(
iv) Ch oos ingproject
swhi chpaybackquickes
twillt
endtominimizet
hoseri
sksf
acing
theCompa nywhi c
ha r
erel
atedtotime.Howe ve
r,notal
lri
sksarere
lat
edmerelyto
time .

Disa
dvantages:
(
i) P aybackdoesnotmeasureove
rallpr
ojectwor t
ha si
tdoesnotc
onsi
derc
ashf
lows
a
fterthepaybac
kperiod.Itmaybebi a
sedf orlong-
rangei
nves
tment
.
(
i) P
i aybackme t
hodfai
lstotakei
ntoaccountthetimevalueofmoney.

Di
scount
edCa
shFl
owTe
chni
que
s

Unde
rthedi
scount
edc
ashf
lowme
thods
;weha
vet
hef
oll
owi
ng;

(
a)Netpr
esentval
ue(
NPV)
(
b)I
nter
nalRateofRe
tur
n(I
RR)Te
chni
que
s.

Commonf
eat
ure
sofa
llDCFt
echni
que
s:

 Dueal
lowancei
sma def
ortheti
meva l
ueofmone
y
 Cas
hflowsofaproj
ecta
reusedrat
hertha
nacc
ounti
ngpr
ofi
ts

TI
MEVALUEOFMONEY

Dis
counte
dc a
shfl
owisac
a pi
tala
ppra
isa
lte
chni
quet
hatisba
sedonthec
onceptoft
he
t
imevalueofmoneyi
.e
.ashil
li
ngtoda
yiswort
hmoretha
nas hi
ll
ingt
omorr
ow.

As
sumpt
ionsi
nba
sicDCFa
ppr
ais
al

 Unce
rtai
ntydoe
snotexi
st
;
 I
nfl
ati
ondoesnote
xis
t;

27|
Page
 Theappropr
iat
edis
countr
atetouseisknown;
 Ape r
fec
tc a
pit
almarke
texi
stsi.
e.unli
mite
dfundsc
anber
ais
eda
t
t
hema
rke
tra
teofi
nte
res
t.

Ne
tPr
ese
ntVa
lue(
NPV)Me
thod

Thismethodinvol
vescal
cula
tingthepr
esentva
luesofe
xpect
edca
shinf
lowsandout
fl
ows
andest
ablishi
ngwhethe
r,i
ntotal,t
hepre
sentval
ueofcashi
nfl
owsisgr
eat
ert
hanthe
pre
sentvalueofca
shoutfl
ows.

Alt
ernat
ivel
y,fi
ndthepre
sentval
ueoft
heexpe
ctednetcas
hflowofinve
stment
di
scount
e datt
hecostofc
apit
al,s
ubt
rac
tfr
omittheini
ti
alcos
tout
layoftheproj
ect
.

NOTE:
 I
fNPVi sposi
tive,t
heproje
ctshoul
dbeaccept
ed;
 I
fnega
tive
,itshouldberej
ecte
d;
 I
fthet
wopr oj
ec t
saremutual
lyexcl
usi
ve,t
heonewit
hthehi
ghe
r
NPVshoul
dbec
hos
en.

Yea
r Ca s
hflow PVIF( ) PV
1 (500) 0.
909 (454.
5)
2 9000 0.
826 7434
3 8500 0.
751 6383.
5
4 5000 0.
843 4215

NPV 17,
578

NPV=17578–12,
000=$55.
78

Example
Ass
umet ha
tafir
mi sc
onsi
deri
ngtwoproj
ect
seachre
qui
ri
nganinves
tmento
f
Shs
.100,
000.Thefi
rm’smar
ginalc
ostofc
api
tali
s10%.Thenetcas
hflowsfor

28|
Page
i
nve
stme
ntsAa
ndBa
res
hownbe
low.

YEAR
Cash 1 2 3 4 5 6
f
low
A($) 50,
000 40,
000 30
,000 10,
000 1,000 1, 000
B($) 10,
000 20,
000 30
,000 40,
000 50,000 60,000

Sol
uti
on:

Pr
oje
ctA 4 10,
000 0.
683 6,
830.
13
PV 5 1,
000 0.
621 620.
92
I
nterest Present 6 1,
000 0.
564 564.
47
  Ne t Fa c
tor Va lue     NPV 9,
067.
37
Year Cashflow at10% (
PV)
-
0 - 100,000 1. 000 100,
000.00 Proj
ectB
1 50,000 0. 909 45,454.55
2 40,000 0. 826 33,057.85
3 30,000 0. 751 22,539.44
Sinc
eprojectBhasahi gherNPVthanproj
ectA,itshoul
dbes
ele
cte
d.

I
nte
rna
lRa
teofRe
tur
n(I
RR)

Int
ernalra
teofr eturnisthedisc
ountr at
e ,whic
hgi vesaz e
rone tprese
ntva lue
(NPV).Tha tis,itisther a
tetha
te quatestheprese
ntva l
ueoft heexpectedf ut
ure
cashfl
owst othei nit
i
Palc
V ostout
la
Py
r.
esent
  Net Fa c
tor Va l
ue
The
Yr
ee
ai
rsno
Cap
sr
e
hc
fli
s
oef
w o
ar
tmu
10l
af
% orde
(
Pte
Vrmi
) ningIRR.Howe ver,throughtria
la nderror
,
IRRc anbee s
tima tedu s ingli
ne arint
erpo
-la
tiontechni
que .Wec anint
erpolate
usi
n0geit
he
-ra
10f
0o
,0r
m
00 ul
aor a
1.
0g
0r
a
0ph.
100,000.00
1 10,000 0.
909 9, 090.91
Form
2 ul
a: 20,000 0.
826 16, 528.93
3 30,000 0.
751 22, 539.44
4 40,000 0.
683 27, 320.54
5 50,000 0.
621 31, 046.07
Whe re
: Ai sthe
6 60,000 0.
564 33, 868.44
(
lowe r
)ratethatgivesposit
iveNPV;
    NPV 40,394.32
29|
Page
 Bi
sthe(
higher
)rat
ethatgive
sne
ga t
iveNPV;
Pi
sthea
mountofpos i
ti
veNPVa tdisc
ountra
teA;and
Ni
stheamountofnegat
iveNPVa tdis
countr
ateB.

Deci
si
onr
ule:
(
i) Ac ce
pttheproj
ecti
fIRRi
sgrea
tert
hant
hecostofcapi
tal
(
ii
) Re j
ectt
heproje
ctifI
RRisl
esst
hanthec
ostofcapi
tal
.

Dis
advantage
:
(
i) I tignore
sther
ela
tives
izeofi
nve
stme
nts

Not
e:
 TheI RRme thodshoul
dnotbeusedtosel
ectbetweenmutual
lyexclus
ive
proje
c t
s.Whe ntherea
retwoormoreproj
e c
tsa ndonl
yoneprojec
tc a
nbe
chosenfroma mongstt
hem, i
tmi
ghtbeinappropri
atet
osele
cttheonewitht
he
highestI
RR.
 Thepr oj
ectwiththehi
ghestNPVshoul
db echos e
n.

Task:Tr
ipol
iLtdi
sconsi
der
ingwhe t
herornott
ounde
rta
keac
api
talpr
oje
ct,
whosecashfl
owswouldbeasfol
lows
Year Ca shf
low
0 ( 60,
000)
1 20,
000
2 40,
000
3 30,
000
4 10,
000

Thec
ompa
nyha sat
arg
etr
ateo
fre
tur
nof15%.Shoul
dthepr
oje
ctbeunde
rta
ken?
UseI
RRmethod.

Task:Mwa na
nchiLtdhast
oc hoosewhichofthre
emut uall
yexclus
ivepr
oje
ctst
o
undert
ake
.Thec ashfl
owsofe achpr
ojectwouldbeasfollows:
Proj
ectX ProjectY Pr ojectZ
Year $ $ $
0 (
160,
000) ( 120,
000) (100,000)

30|
Page
 1 40,
000 60,000 30,
000
2 40,
000 50,000 30,
000
3 60,
000 50,000 30,
000
4 60,
000 40,000 30,
000
5 15,
000 (
10,000) 30,
000
6 - - 30,
000

Thecompany’
scos
tofcapi
tali
s14%.Us
ingt
heNPVme
thod,whi
chpr
oje
cti
f
anys
houldbeunde
rta
ken?

As
signme
nt:Us
inga
nil
lus
tra
tio
n/i
ll
ust
rat
ionsofyourc
hoi
ce
(
i) Showhowt
hef
fme
thodsma
ybeus
edi
nthes
ele
cti
onofpr
oje
cts
(
a) Wha
tar
ethea
dva
nta
gea
nddi
sadva
nta
geofe
ach
PBP,NPV,BCR,I
RRANDARR

31|
Page
TOPI
CFOUR:PROJ
ECTI
MPLEMENTATI
ON
MANAGEMENT
Imple me nta t
ioni nt ermsof
 Sc ope
 Ti me
 Qu alit
y
Itdealswi tht hes c ope
 Br e at
ha ndwe alth
 Ho wf art ogo
 Co vera ge
Projects che dul i
ng: I nvol vest he de t
ermi ne of pr oj
ecta cti
vitie
sa nd the
inte
rrelations hi psbe t
we ent hea cti
viti
e sa rea stode ter
minet hes eque n
ceof
impleme ntation
It’
scommonl yus e dwhe nma na gingthet imea ndresourcedimens i
onoft heprojec
t.
Re s
our ce s-Gr antc harts
Time -CPM a ndPERT
TimeDi me ns ion
Inma nag ingofpr ojects,onen e edst obeve ryc are
fulwhe nplanning,scheduli
ng
andc ontr olli
ngpr ojecta ctiviti
es
Thisi se spe ciallyi mpor tantf orhugea ndc omplexpr oj
ectse.g.Apol lop r
oject
3000pe opl ea nd4000a ctivitie
s
The r
ea reanumbe roft oolsa va i
lablet ot hepr oj
e ctma nagerinma nagingthe
induce dpr oje ct.The setool sinc l
ude :
-
(i) CPM – De ve l
o ped by t he Fr enchf rom De vel
opme nta nd
Re mi ngtonPon d .
-I twa sf orma nagingi ndus t
rialpro je
cts
- Cr it
ic alpathNe t
wor k
- As sume st hata ct
ivitie
st ime sa rede t
ermi nis
tici.
e.the yare known
wi thc er t
ainty
(ii) PERT
 Pr ojec t/pr ogr amEva luationa ndRe vi
e wTe chnique
 De velope dbyt heUSNa vyf ortheBl acisMi s
sileproject
.
I t’smor er ea l
isti
ct ha n CPM be c
a usei trecogni z
esthef a c
ttha tact
ivit
y
time sc antbeknownwi t
hc er
tainty.
I tus e s3t imee st
ima tesi.
e .
(a)mos topt imis t
ictime
mos tlike lyt ime
mos tpe ssimi sti
ct i
me
32|
Page
  The3a r
eus edtode ter
mi nethee xpect
eda cti
vityt erm
Becauseoft heva ri
abili
tyi nt het e rmse st
ima tesf ore verys t
rat
egy,wea lso
2
computet heva rianceoft hee xpectedt ime(σ)
σ2=(b-a/
6 ) and σ=(b- a)/6
(
1) Thepr ojecttime /
directi
onwi llbesumoft het ime softhea ct
iviti
esinthe
c rit
icalpa t
h
(
2) Theva rianceoft hepr ojectdur at
ionisa l
sot hes umofheva riancesofthe
a ctivit
ie sinthec rit
icalpath
Both CPM a nd PERT ut il
ize a ne twork di agram t hats houl
ds how t he
int
erre
lations hi
pbe twe enthea cti
viti
e svisualimpr e
s s
ion
Despit
et hedi f
fe rencesthate xis
tedbe tweenthet ome thods ,theyareus edtoget
her
inschedulingpr ojectactivi
ties
Inbothme thods ,wes t
artbyi dentif
yi ngthea ct
iviti
esa ndt heinterr
elat
ionships
.
At e
a ma ppr oac hi nvolvingc reat
inga ndofftode tailisre quire
dde pendingont he
complexityoft hepr oject.
Onthene twor kdi agram: -
I nside sa reus edtor epresenteve nts.
 Ane ve ntma rksthebe ginningore ndofa na cti
vity.
 Eve nt satt hebe ginningo factivitie
sa r
eknowna staileventsdenoteda si
 Eve nt satt hee ndofa ctivit
iesa reknowna sleasteve ntsdenotedorj

i j

Ta
ile
vent He
adt
ext

Ar
cora
rrowa
reus
edt
ore
pre
senta
cti
vit
ies
Ar
cca
rri
est
hede
scr
ipt
ionofa
nac
tivi
tya
nda
lsot
hede
via
tion
Forc
rit
ica
lac
tivi
ti
es,t
heya
rea
lsoma
rke
dac
cor
dingl
y
-
Act
ivi
ti
esi
.e
.ide
nti
fi
edbyl
ett
ers
-
Eve
ntsa
rei
dent
if
iedbynumbe
rs
i
) Af
tert
hene
twor
kdi
agr
ami
sde
cis
ion,t
hee
vent
sshoul
dbe
numbe
reds
eque
nti
all
yfr
omt
hel
eftt
other
ight

33|
Page
i
i) Not
oac
tivi
ti
ess
houl
dha
veac
ommont
aile
venta
nda
c
ommonl
eade
vent
D

i E i

I
nthea
bovec
ase
,wei
ntr
oduc
eadummya
cti
vit
y

DummyAc
tivi
ty
E

Dummya
cti
vit
iesdon’
tcons
umea
nyr
esour
ces
.The
yar
eonl
yint
roduc
edi
na
ne
twor
ktoma
int
ainort
obe
ingl
ogi
cint
othedi
agr
am
Thec
rit
ic
alpa
thi
sthel
onge
stpa
thi
nthepr
oje
ctne
twor
k.
 A pa
thi
sas
ucc
essofc
onne
cte
dac
tivi
ti
es,s
tar
ti
ngf
rom t
hei
nit
iale
vent
(
node1)t
othet
ermi
nale
vent
.(Compl
eti
onnode
).
 Thec
rit
ic
alpa
thde
ter
min
est
hepr
oje
ctdi
rec
tions
 Thea
cti
vit
iesont
hec
rit
ica
lpa
tha
reknowa
scr
it
ica
lac
tivi
ti
es
 Cr
it
ica
lac
tivi
ti
esha
venos
lac
kti
mei
.e
.the
yca
ntbede
laye
dw/
oaf
fec
ting
t
hepr
oje
ctdi
rec
tion/
ti
me
 No
ncr
it
ic
ala
ct.Ca
nbed
ela
yedw/
oaf
fec
tingt
hepr
oje
ctdi
rec
tion
34|
Page
The
res
houl
dbeonl
y1i
nit
iale
venta
ndonl
y1t
ermi
nale
vent
.
St
epsi
ntheCPM/
PERTpr
oce
ss
St
ep1:De
vel
opme
ntal
is
tofa
cti
vit
iest
hatma
keupt
hepr
oje
ct
St
ep2:De
ter
minet
hei
mme
dia
tepr
ede
ces
sora
cti
vit
ie
sfore
acha
cti
vit
iesi
nthe
pr
oje
ct
3 Es
ti
mat
ethec
ompe
tit
iont
imef
ore
acha
cti
vit
y
4 Dr
awane
twor
kde
fec
ti
ngt
hea
cti
vit
iesa
ndt
her
eimme
dia
tepr
ede
ces
sor
s
l
is
ti
ngi
nst
ep1a
nd2a
lone
.
5 De
ter
minet
hee
arl
ie
sts
tar
tandt
hee
arl
ies
tfi
nis
hti
mesf
ore
acha
cti
vit
y
Byma
kingpr
oduc
tpa
sst
hroug
hthene
twor
k.Thee
arl
ies
tfi
nis
hti
mef
ort
hel
ast
a
cti
vit
yint
hepr
oje
cti
dent
if
iest
het
ota
lti
mer
equi
redt
ocompl
etet
hepr
oje
ct
St
ep6:I
dent
if
ythel
ate
sts
tar
tandt
hel
ate
stf
ini
sht
ime
sfore
acha
cti
ngus
ingt
he
ba
ckwa
rdpa
ss,s
tar
ti
ngf
romt
hepr
oje
ctc
ompl
eti
ont
imea
sthel
ate
stf
ini
sht
ime
Thel
ate
stf
ini
sht
imef
ora
nac
tinge
nte
ringapa
rti
cul
arnode
/eve
nti
sequa
ltot
he
l
arge
stoft
hee
arl
ies
tfi
nis
hti
mesf
ora
lla
cti
vit
iese
ndi
nga
tthee
vent(
ste
p5)
7: Us
ethedi
ff
ere
ncebe
twe
enl
ate
ste
acht
imea
ndt
hee
arl
ie
st
s
tar
tti
mef
ore
acha
cti
ngt
oide
nti
fyt
hes
lac
kti
mea
vai
labl
efort
hea
cti
vit
y.
Ac
tivi
ti
esw/s
lac
kti
me=z
eroi
nthec
rit
ic
ala
cti
vit
ies
I
ll
ust
rat
ion
Ka
bet
ece
ntr
eisc
ons
truc
tingors
hoppi
ngi
nBokol
i.Thea
cti
vit
iesf
ort
hispr
oje
ct
ha
vebe
eni
dent
if
ieda
sfol
lows
:-
Act
ivi
ty De scr
iption Pr
ede
ces
sor Ti
me
A Prepare - 8
B archit
e ct
ural - 4
Identi
f ypotent
ial
C tenants A 3
De velopment
prospe ct
usfor
D trai
ning A 5
35|
Page
E Select A 2
contractor
s.
F Prepa r
ebuilding E 4
G permi t
s D,
F 18
Obta i
na pproval
H 4 B,
C 11
Perform
I constructi
on E,
G,H 3
Finalize
constructi
on
Tena ntsmov ein

1.Cons
truc
tthepr
oje
ctne
twor
kandi
dent
if
y.
2.Thec
rit
ic
alpa
tha
ndhe
ncee
sti
mat
ethepr
oje
ct’
scompl
eti
ont
ime
.

1414
88
D
5
2 E F
A
4 X
I
C 1010 6 7
1 B
00 32 32 3535
4
3 H

1121

Cr
it
ica
lpa
th:
- A-
E-F-
G-I
Dur
ati
on 35da
ys
Apr
oje
ctha
sthef
fac
tivi
ti
es:

36|
Page
Ac
tivi
ty Pr
ede
ces
sor Mos t Mos
tli
kel
y Mos t
opti
mist
ic opti
mist
ic
A - 3.5 4.
0 4.5
B A 2.0 3.
0 4.0
C - 1.5 2.
5 6.0
D C 0.5 2.
0 2.5
E B,
D 1.
0 1.5

Ac
tivi
ty Pr
ede
ces
sor Mos t Mos
tli
kel
y Most
opti
mist
ic pe
ssi
mis
ti
c
F E 6 9 12
G B,
D 4 5 6
H G 3 4 5
I F,
H 1.5 8.
0 8.
5

Re
qui
red:
-
a
) Cons
truc
tthepr
oje
ctne
twor
kandde
signa
tet
hee
xpe
cte
dcompl
et
ion
t
ime
b) Wha
tist
hepr
oba
bil
it
ytha
tpr
oje
ctwi
llbec
ompl
ete
d
c
) I
fyouwoul
dli
ket
ocompl
ete
.Thepr
oje
ctont
imewi
thapr
oba
bil
it
yof
99.
5%,howe
asys
houl
dthepr
oje
cts
tar
t.

37|
Page
 TOPI
CFI
VE:PROJ
ECTLOGFRAME&RI
SKANALYSI
S

PROJ
ECTPLANNI
NGMATRI
X(PPM)

TheLogicalFrame work(orlogfr
ame)isamanageme ntt
oolt
hatai
mst opromote
goodprojectdesignbyc lear
lys t
ati
ngthekeyc omponent
s,how t
hepr oj
ectis
expect
edtowor k,a ndhow s uc
cesswillbemeasure
d.Itensur
est
ha tt
hewhol e
proje
ctprocessisconsi
deredbe f
oretheworkbeginsther
ebyavoi
dingproble
ms
thatmaybec ost
lyanddif
ficultt
oaddres
satala
terst
age.

ThePPM isamatri
xoff ourc
olumnsandfourrowsprovi
dingsixt
eensquar
esfora
compre
hensi
vede sc
ripti
onofapr oj
ec t
.PPM s howsbotht heproj
ect'
slogica
l
st
ruc
ture(
theli
nksbe t
we ent
heinput
s/
a ct
ivi
ti
esandtheobjec
tive
stobea chi
eved
unde
rcert
ainAssumptions
),a
nditsmajorquant
it
ati
vedat
a

ThePr ojectPlanningMa t
rix( PPM)e nablesdecisi
onma kerstoidenti
fyproj
e c
t
purposesa ndgoa l
sa ndplanf orproj
ectoutput
sa ndinput
s.Thet ec
hniqueisused
forplanningproject
s,providinga nobje
ctivebasi
st oeval
uateproj
ect
sa ndt
os t
a t
e
assumpt i
onsaboutc ausa
llinka ge
s.ThePPM pr ovidesaonepa geovervi
ewo fany
proje
cta nditisba sedonc ausalreas
oninga ndthought(i
.e.ifacert
ainact
ivi
tyis
undert
a kenitwillachie
veac e rt
ainre
sult
).

l
ogframei srequir
eme ntforallWBf undedprojec
ts.Thelogf
rameisaworking
t
oolusedthroughoutthelifeofapr oject
,from c
oncept
iontocompl
eti
on.Agood
l
ogfr
ameisc entra
ltoas uc ce
ssfulproposalint
hefir
stinst
ance
,andi
nt hel
onger
t
ermma ke
sf orwe l
l-
ma nagedp r
ojectstha
tma keadif
ferenc
e.

PPM i
sus
efuli
ntwowa
ys:

–i nthepla nningproce
ss:PPM force
stheplannertocons
tantl
yc he
ck
whe t
herthepr oj
ectdes
ignispl
ausi
bleandconsi
stent
–
–i nde c
idingont heproje
ctandi nexecut
ingit
:PPM f acil
it
a t
est
he
communi c a
tionamonga l
lpart
iesonthe"why"a ndthe"how"ofthe
proj
ect,thusa l
lowsf orapr oj
ectmonitor
ingba sedonc ommon
underst
and i
ng

38|
Page
 Pr
oje
ctPl
anni
ngMa
tri
x(PPM)

A1-pa ges ummaryofwhyaproj

ectiscar
ri
edout
,whatt
heproj
ecti
sexpe
cte
dto
ac
hieve ,howitwi l
lac
hie
vetheresul
ts
,whichfa
ctor
sar
ecruci
alandasens
eof
whatitwi l
lcost
.

Na
me/
Tit
leofPr
oje
ct:XXXXX Da
tePr
epa
red:XXXX
Dur
ati
on:Apr2007-XXXX Cos
t:XXX
Loc
ati
on:XXXXX

Na r
rativeSumma ry Obj ectiveVe r
ifiable Means of As s
umpt i
ons /Ri sks
Indicator s Ver
ifi
cat
ion
Goa l
: Me a s
ur es in Where t
he Goa lt
oSupe r-goa l
Wha ti st heove ral
lr espons et ot hea ims OVI sc an be Wha te xt er
na lf actorsa re
objecti
ve of t hi
s view on wha twi l
lfound. necessaryf or s us tai
ning
project i n it
sc ons t
itutes ucces s object
ive sint hel ong- r
un?
contri
but ion tot he
qualit
yofl if
ea ims?
Purpos e:(WHY) Qua ntitati
ve Where t
he Purposet oGoa l
The spe c
ifi
c me asure s or OVIsc an be Wha tc ondi t
ionse xter
na l
objecti
ve of t he qua li
tative e videnc efound. to t he pr ojec t a re
projecta ndimpa ctof bywhi c hdistri
but i
on necessaryi fa chieve me nt
theproje ctgoal. of e ffects a nd ofthepr oject’spur pos ei s
bene fi
ts c an be to c ont ri
but e t owa rds
judge d ( qua nti
ty, reachi
ngt hepr ojectgoa l?
qua li
ty,t i
me )
Output s:(WHAT) Wha t ki nd a nd Whe re t
he Outputt oPur pose
The t hings/
result
s qua nti
tyo fout puts,OVI sc an be Wha ta r
et hef a ctorsnot
thatthepr oje
ctmus ta nd by whe n wi l
lfound. withint hec ontroloft he
deli
ve ri n ordert ot heybepr oduc ed? projec
twhi c h,i fa bsent,
achievet hepur pose? willrestrictpr ogre ssfrom
outputstopur pos e?
Ac t
iviti
e s:(HOW) I nputs/Re sour c
e s Where t
he Ac t
ivi
tyt oOut put
Wha ta c ti
viti
esmus t Wha t ma teri
a l
s/ OVIsc an be Wha te xterna lfactorsmus t
39|
Page
be unde
rta
ken ine quipme nt or f
ound. be real
is
ed to obt
ain
orde
rtoaccompl
is
hs ervice
sa reto be pl
anned output
s on
the out
puts and provideda twhatc
ost sc
hedul
e?
when? ove rwha tperi
odby
whom.

• Theove r
allgoa ltell
sust hehi gherl
evelobject
ive(
s)towhichtheprojec
tis
expectedtoc ontributeto
• projectpurposede s
cribestheintende
di mpactortheanti
cipa
tedbenefi
tsasa
precis
e l
ys tat
edf uturec ondi
tiontheprojec
tise xpec
tedtoachie
vea ndonly
contri
butest otheove rallgoal
•r esult
s/out
put sa reexpr ess
eda sobj
ecti
veswhi chtheprojectmanagement
mus tachievea nds ust
a i
n
• Ac ti
viti
esne cessarytoa chievetheresul
ts
/outputswereli
ste
d.Activi
ti
esare
expresseda sactions

• Obje
cti
velyVe r
if
iabl
eIndi
cat
orsshow theimport
antc
har
act
eri
st
icsoft
he
obj
ect
ivesandtheperf
ormanc
estandardexpe
cte
dtoberea
chedinter
msof
qua
nti
ty,qual
it
y,ti
mef r
ameandlocat
ion

• me ansofverif
icat
iont
elluswhe r
ewes houl
dobt aint
heda tanece
ssar
yt o
provetheobject
ivesde
finedbytheindi
cat
orha sbeenreac
he d.Mostofthe
informat
ionwou ldbea vail
abl
ef r
om networkr epor
ts,progre
ssreports
,
surveyrepor
tsandmonit
oringandeval
uat
ionreport
s

• Assumpt
ions
:proj
ectmana
geme ntmustc
ont
inuous
lymonit
orandi
nfl
uence
,
asfaraspossi
ble,anyexte
rnalfact
orswhichma yadver
sel
yaffe
ctthe
at
tai
nmentoft
hestat
edobj
ecti
ves

PROCEDUREFORCONSTRUCTI
NGAPPM

• De f
inet hegoa l.Thisistherationalefortheproje
cta ndwill
havea l
readybeende f
inedast hema i
ngoa lofthepr oj
ect.Toi mprovethequa li
ty
oflif
eforpeopleli
vinginslumsi nMomba s a
• De f
inet hepur pose.Whyi sthepr oje
c tbei
ngc ar
rie
do utin
te
rmsofi nt
endeddirecteffectandi mpac t?Thiss houldbeonec l
earstate
me nt
whichistheimpacttheprojecthopest oge nerat
efromt heout put
s.
• De f
ine out puts.Thi si sas umma ry of the intended
accomplis
hme nt
soft hepr ojectt ha tha vebe eni denti
fied.The seshou l
d be

40|
Page
nec e
ss aryf ora c compl ishingt hep urpos eoft hepr oject.
• De fi
net heAc tivi t
ies.The sea rethea c tionsne ede dt o
accompl i
s ht heout putsa nda r
ec arriedoutbyt hepr ojectpa rt
ic ipantsdur ingt he
lif
etimeoft hepr oject.
Proce duref orCons tr
uc tingaPPM
• Che ckt hel ogi c.Got hrought hel eftc ol umn( obje ct
ive
levels)u singt heI F[]THEN []orus et heque stion“ how”movi ngdownt he
hierarchy ,and“ why”movi ngupt hec ol umn.
• Ide ntifyi mpor tanta ssumpt ions .I twi llbe c l
e arwhe n
che c
ki ngt hi sl ogict hata chi eve me ntsa rea lsode pende ntone xt erna lc ondi t
ions
whi cha ree ithe rout s
idet hec ont r
oloft hepr oje c
torwhe rethepr ojectc hoos e snot
toe xe rtc ont rol.Obj ective sl eve l
sc ons ide r
e dwi t
ht hei mpor tanta s
s umpt ions
shouldpr oduc et hene ces sarya nds uf f
ic ientc onditionsf ora chievingt hene xtlevel
up,e .
g.I F[ a ct
ivi ti
es]AND[ ass umpt ions ]THEN[ out puts].
• De fi
net heme a sura blei ndicator s
.As kt heque stion“ whe n
andhowa ndonwha tba siswi llweknowwhe nweha vea c
hieve dwha twes etout
todo? ”Asf ara spos sibl e,t hei ndic ator sc hose ns houl dbequa nt ifiablea ndt ime-
bound a nd pr oj ectl eade rss houldc ons iderwa ysofme a
sur ing qua li
tya nd
performa nc ea swe lla squa ntity.The sei ndi catorsa rei mportantf ormoni tor inga nd
eva l
ua ti
ngt hepr ojectbot hi nterna ll
ya nde xternally.
• De fi
ne t he me ans of ve rificati
on ( sca le).Sour ce s of
informa ti
onus e dt ove rifyt hea c
c ompl i
s hme nts.The sea rege ne rallyr ecorded
detail
ss uc ha spubl ic
a ti
ons ,s urve ys,pr ojec tnot e
s,r epor t
s,ta
pe s,vi deose tc

41|
Page
 NAMEOFTHEPROJ
ECT:FREEEDUCATI
ONFORORPHANSI
NKI
TUTUMASABA. FROM:AUGUST2006
•
TO:DECEMBER2010

TOTALFUNDI
NG:KSHS.
7Bi
ll
ion. DATEPREPARED:29/
07/
06.

NARRATI
VE OBJ ECTI VELY MEANS OF I MPORTANTASSUMPTI ONS.
SUMMARY VERI FIABLE VERI FICATI ON
INDI CATORS.
GOAL: -The numbe r of or phans i .Mi ni s
trye valua t
ion  Fundswi llbea va i
lable .
To pr ovide f re
ee nr olled i n s econdaryr epor ts.  Suppor tf r om t he c ommuni ty i s
secondarye ducati
on sc hool stoi ncreaseby80% i i. End ter
m guarantee d.
toorpha ns tudentsin by2010. pr ogre ssi
ver eports.  Suppor tfromt hemi ni
s t
r yofe ducati
on.
Kitutu Ma s
aba -The numbe r of or phans i ii.Phys icalc ounting.  St udentwi l
lbewi llingt ogot os chool.
consti
tuenc y. dr oppi ngoutofs choolt o  Time l
ya ppoi nt me ntof s kill
eda nd
dr opby90%by2010. experienc eda dvi sers.
 Ava i
lability of a ppr opriate t rai
ned
st
a f
f.
PURPOSE: -At l east 50% of t he i .Mi d-Termr eports.  Loc al gove rnme nt wi lls upportt he
Toi ncreaset helevels tude ntst oe nrol
lf orf reei i.Ins pect
or srepor t
s project
.
oflite
rac ya mongt he se conda r
y e ducati
on of i ii.Obs ervation  The c ommuni ty wi llbe wi l
li
ng t o
orphans i n t he whi c h2 0%a regi r
ls. iv.Pr ojects t
eering ma nagea nds usta i
nt hepr oj
e ct
.
communi t
y. -Me asurablei mproveme ntsc ommi t
tee me e
ting  The mi nistry wi lls upply e nough
wi thint wo t erms of t he r epor ts. teachers
pr oject.  Fundswi llbea va i
labl e
.
OUTPUTS -At l east 10 qua lif
iedi .Pol icydo cume nts  Trainedpe rsonne lar ea va i
lable.
1.I nforma tion f l
ow t ea chers a vaila
ble pe ri i. Sur vey a nd  Policyma kersa ndpl anne rswi ll
ingt o
in the c ons ti
tuencys c hool . pr ogre s
se va l
uation coordina t
et hepr oject.
improved. -Te aching, monitoring r epor ts.  Communi tywi llingt oa ttend“ barazas”.
42|Page
2. Ac ces s tos ys temsi npla ce. iii.Moni toringa nd  Projects teering c ommi tt
ees upports
,
educati
onbyor phans -Educ ati
ona l offi
ce r
se va lua t
ionre ports sponsor sande ndor se scha nge s.
improved. invol vedi nthec ampa igns i v. Phys ical
 3. Appr opri
a t
e- Mor eproject
sfunde d. counti
ng.  Cl
ass
esf
unc
tiona
t80%c
apa
cit
y.
polic
ies -Physica
lc ounti
ng
recomme nded
4. The numbe r of
center
sof f
ering free
secondar
y e duc a
tion
incre
ase.
INPUTS: -Purchaseds t
a t
ioneri
esa nd i.Projec
tpla nni
ng  Fundingoft heproje
ctisbet
ween8- 10
1. Equ ipme nt a nd otherequipme nts. documents years.
suppli
es -Hiri
ngo fqua li
fiedsta
ff. i i
. Di sbur
se ment  Resultsfromtheproj
ectar
eavai
lable
.
2.Skill
edpe rsonnel - Sourci
ngf orf unds fr
om r ecor
ds.  Programmee valua
tor
sa r
ecompetent
3.Ope r
ationfunds . gove rnme nt, NGO’ si i
i.Proj
ectproposal  Cons t
raints have be en adequatel
y
indi
viduals. document. analyzed.

 The pr
oje
ctc ont
inue
sto ha
ve good
mana
gement.

ACTI
ONPLAN

ACTIVITIES RESPONSI BILITIES DATE

1.Coordinat
ion and ma
na ge
ment sys
tem 1.Pr
oje
ctcoordi
nator August 4th
es
tabl
is
hed. 2.Huma nre
sourcemana
ger –Sept
embe
r 8th
a)Dr a
fti
ng pr
oposa
l,appoi
nti
ng i
nte
rim 3.Chi
efs a nd Sub- chi
efs i
n 2006.

2|
Page
 coordinator,de fi
ningme mber
shipa
nd orga
niz
ing“ bar
azas
”
est
ablishingas e
creta
ria
t. 4.Wome n’sOrgani
zat
ions
b)Organiz i
ngi nformati
onflowpla
ns 5.Loca
lc ommunity
c)Organiz i
ng steer
ing commit
te
e 6.Yout
hor gani
zati
ons
me et
ings
d)Organiz i
ngt rai
nings
e)Preparingpr oposal
f)Pursuingf unding.
g)Disbursingf unds.

2
.Informa t
ionf l
owi nt here gi
onisi mp r
ove d. 1.OrganizingSe cr
eta
ry Sept
ember 9th
a)Enc our aging quick response 2.SecretaryGe nera
l. –Oct
ober1st2006.
corr e
s ponde nce. 3.Teachers
b)Pr e paring l ists of r e
comme nded 4.Projectc oordinat
or.
textbooks . 5.SchoolSt udents
c)Or gani zingme e ti
ngsa ndwor ks h
ops .
d)Or gani ze quic kc a mpa i
gnsf ort hose
stude ntsa lreadyi ns chool
sa ndt hose
notye te nrol
led.
3
.Ac cesst oe duc ati
oni mpr oved. 1.Thepr oj
e ctcommi tt
eeme
mbe
rs. Oct r 2nd –
obe
a)Pr e paring a nd s ubmit
ting we l
l 2.NGOs November 23rd
doc ume ntedpr oposalt oatt
ractf unding 3.Loca lauthoritie
s 2006
from gove rnme nt, NGO’ s a nd 4Pr i
ncipals
individua l
s. 5.Child&Yout h
b)Or gani zingfort rai
ningc ours
e s. Servic
e sMa nager
c)Mobi lizing re sourcest os urveyt he

3|
Page
 whol ec ommuni ty.
d)Identif
yi ngs chol ar
shipsf ors t
ude nt
s.
4
.Improve dma na ge me ntsys t
e m. 1.Alle mployees Ongoi
nga
cti
vit
y.
a)Establishinggoodc ommuni cat
io nli
nks 2. Trainers
betwe en t he ma na geme nt a nd the 3. Evaluationteam.
communi ty. 4.Parent/
Te acherOrgani
zat
ions
b)Assistint rainingoff ie l
dpe r
sonne l
.
c)Providingi nf orma t
iont opol icyma kers.
d)Establishing a moni tori
ng a nd
evaluations ys t
em.
5
.Appropr i
atepol iciesr e
comme nded. 1.Dis tr
ictChild Novembe
r 2006-
a)Compi l
ing a nd r e porti
ng e xi
sti
ng Educ ati
onof f
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mber2007.
inf
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ctands choolcommitt
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4|
Page
 RI
SKANALYSI
S

Ri
skAna
lys
is
• Riskisinher
entinalmosteverybus
inessde
c i
si
on.Proj
ec t
s
i
nvolvecost
s&be nef
it
sextendi
ngove ralongperi
odoftimeduri
ngwhi c
hma ny
t
hingscanchangeinunant
ici
patedways.
• Proj
ectris
kanalysi
siscomplex&s l
ippe
ryaspect
.Nos i
ngle
t
echniqueofanal
ysisi
sidea
l

Br
oadTypesofte
chnique
s
i.Techniquest
hatconsi
dert
hesta
nd-
aloner
iskofapr
ojec
t
i
i.Techniquest
hatconsi
dert
heri
skofaproj
ectint
hecont
extoft
hef
ir
m
ori
ntheconte
xtofthemarke
t

Sour
cesofRi
sk
• Pr oj
ect-sp ecif
icrisk
– Thee arnings&c a shf l
owsoft heprojectma ybelowe rthan
expecte
dbe causeofa ne st
ima tione rr
ororduet os omeotherfactorsspeci
fictothe
proje
ctlikequa li
tyofmgt
• Compe titiverisk
– Thee arnings&c a shflowsoft heprojec
tma ybea ffect
edby
theunantic
ipa te
da ct
ion softhec ompe ti
tors
• Indus t
ry- specif
icrisk
– Une xpe cte d technol ogical de vel
opme nts& r egula
tory
changestha tares pecifictot hei ndustryt owhi c htheprojectbelongswillhavea n
impactont hee arnings&c as
hf lowsoft hepr o j
ecta swell
• Ma r
ketr isk
– Una nticipa t
e dcha nge sinma cr
oeconomicf actor
sl i
ket he
GDPgr owthr ate,interestrate,&i nfl
ationha vea nimpa c
tona llproject
s,alb
eitin
varyi
ngde gr e
e s
• Internationa lri
sk
– Int hec a seoff ore i
gnpr oject
,thee ar
ningsa ndc as
hf l
ows
ma ybedi f
fe r
enttha ne xpec t
edduet othee xchanger ateri
skorpol it
icalr
isk

MEASURESOFRI
SK
• Ri
skref
erstovar
iabi
lit
y.Iti
sacomple
x& mult
if
a c
ete
d
phe
nome
non
• Meas
ure
si ncl
ude
;r ange,st
d de
via
ti
on,c
oef
fi
cientof
1|
Page
var
iati
on&s emivaria
nce
• Example;considerapr
ojectwhosenetpr
esentval
uehasthe
fol
lowingdi
st
ribut
ion;
• Thee xpec
tedNPV =( 0.3*200)
+(0.
5*600)+( 0.
2*900)=
540
• Range
– Simpl
e s
tme asureofr
isk
– Range=900- 200=700
2
• St
ddeviati
on=[∑pi(
Xi -
Expe cte
dval
ue) ]½
=250
• Coef
fi
cientofva
ria
tion(r e
lat
ivemeasur
eofri
sk)
– Oneproblem wi
thstdde via
tionorvari
ancei
stha
titi
snot
a
djus
tedf
ors
cal
e
– Eggoingbys t
dde vi
ati
ononl y,aproj
ectwit
ha nNPV of
10m&s tddevof100,
000wouldbecons
ideredmorer i
skyt
hananinves
tmen
twith
anexpe
ctedNPVof1m&s t
dde vof90,
000
– TheC.
Va dj
ust
sst
dde vforscale
CV=s tddev/
Expecte
dVa lue
=250/540=0.46

• Semi-Var i
ance
– Anotherpr oblem wi t
hs td devist hatitc onsi
der
sa l
l
devi
ati
ons,posi
ti
veaswe l
lasn egat
ivefromt hee xpe
cte
dvalueinthesamewa y
– Inves
torsareconce r
neda boutonl
ynegati
vedeviati
ons
– Itc a
lculati
ng semi -
va r
iance,only outc
ome s bel
ow the
expe
ctedvaluear
eta
ke nint
oa ccount
2
– SV=∑[ 0.
3(200-540) ]=34680&s emi -
stddev=186 .
2

• ThePri
nci
palMeasure
– Despi
tet
helimi
tat
ionsofs
tdde
v,i
tist
hemos
tcommonl
y
us
edme
asur
eofr
isk
– Ma inreas
onsofusings t
ddev;
• Ifavariabl
eisnorma l
lydist
ri
buted,i
tsmean&s
tdde
via
tion
cont
aina
llt
hei
nfor
mationaboutit
sprobabil
it
ydistr
ibut
ion
• Stddeviat
ionisanalyt
ical
lyeasi
lytra
cta
ble

PERSPECTI
VESONRISK
• St
and-a
loner
isk
– Theri
skofaproj
ectwhe
niti
svi
ewe
dini
sol
ati
on
2|
Page
• Fir
mr i
sk/
cor
porateris
k
– Refl
ect
sthecontr
ibuti
onofapr oj
ecttotheri
skoft
hefi
rm
• Syst
emati
cri
sk/ma rketr
isk
– Theris
kofapr oj
e ctf
romt hepointofviewofadive
rsi
fi
ed
i
nve
stor

METHODSOFRI
SKANALYSI S
• Se
nsit
ivityAna l
ysi
s
Rea
don
• Sc
enarioAna lys
is
• Br
eak-Eve nAna l
ysi
s
• Hi
lli
erMo del
• Si
mulationAna l
ysis

Sens
it
ivi
tyAna l
ysis
• Sinc
ef utureisuncert
ain,youmayli
ket
oknow wha
twil
l
ha
ppentot hevia
bili
tyofthepr oj
ectwhens omevari
abl
eli
kes
ale
sori
nves
tme
nt
de
viat
esfromitsexpect
edva l
ue–“ wha ti
f”
• Considerthefol
lowingexample
;

Ca shFlowFor eca
stforMombasaFlourMil
lPr oj
ect(ks
hi n
'
000')
year1-
Year010
Investment    -20,
000  
Sales      18,000
Va ri
ablecosts(
66.66%of
sales) 12,000
Fixedc ost
s 1,000
De precia
tion 2,000
Pre-taxprofi
t 3,000
Taxe s 1,000
Profitaft
ertaxe
s 2,000
Ca shflowf r
omope ra
tion 4,000
Ne tcashflow -20,
000 4,000

Sens
it
ivi
tyAnal
ysi
s
• Ca
shf
low f
rom ope
rat
ionsi
sana
nnui
tyhe
nceNPV oft
he
fl
ourmil
lpr
oje
ctis
;
3|
Page
-20,000,
000+4, 000*PVI
000, FA(r=12%,n=10)
-20,000,
000+4,000,
000(5.
650)
=2, 600,
000
• NPV ba se
done xpecte
dva l
uesoftheunder
lyi
ngvar
iabl
es
lookspos i
ti
ve.Theunderl
yingvar
iabl
esc anvarywide
ly& he nc
e& hencethe
needt oexpl
oret
heeff
ectofsuchva
riat
ionsontheNPV
Se
nsit
ivit
yofNPVt
ova
ria
tionsi
ntheva
lueofKe
y
Var
iable
s

Ra
nge NPV
Ke y
Va r
iabl
e Pessi
mis
ti
cExpec
tedOpti
mis
ti
cPe ss
imi
st
icExpe
cte
dOpti
mis
ti
c
Invest
me 24
nt 20 18 -0.65 2.
6 4.
22
Sales 15 18 21 -1.17 2.
6 6.
4
Va r
iabl
e
cost
s% 70 66.
66 65 0.34 2.
6 3.
73
Fixed
Costs 1.3 1 0.
8 1.47 2.
6 3.
33

• Va
ryoneva
ria
blea
tat
imehol
dingt
heot
herva
ria
ble
s
c
ons
tant
• Me ri
tsSA
– Showshow r obustorvulnerabl
eaproj
ecti
stocha n
ge sin
value
softheunderlyingva riable
s
– Indic
a teswhe r
efurtherwor kmaybedone.Ift
heNPV i s
highl
ys e
nsi
tivetoc ha ngesi nsomef act
or,itma ybewor
thwhil
etoexplor
ehow
thevari
abi
li
tyofthatc rit
icalfactormaybec ont
ained
– Itisintuti
ve l
yave r
ya ppeali
ngmet
hoda si
tart
icul
atesthe
concer
nsthatproj
ecte valuatorsnormall
yha ve

• Short
c omingsofSA
– Itme rel
ys howswha tha ppenstoNPV whe nt he r
eisa
changeinsomevar
iablewithoutprovidi
nga nyideaofhowl ikel
ythatcha ngewi
ll
be
– Typic
a ll
y,i ns ensi
ti
vi t
ya nalysi
s only one var i
ablei
s
changedasati
me.I
nt herealwor l
d,howeverva ri
abl
e st
endtomovet ogether
– Iti
sinhe r
entlyaverys ubj
ecti
veanalys
is.ThesameSAma y
lea
donede ci
si
onmake rt
oa ccepttheproj
ectwhi l
eanothermayrejec
tit
4|
Page
5|
Page
 TOPI
CSI
X:MANAGI
NGOTHERDIMENSI
ONS:PROJ
ECTCONTROL
STRUCTURES

-
Useofo
the
rtool
sina
ddi
ti
ont
oabove
CONSTRUCTI
NGWI
P
Thi
sisac
rit
ica
lac
tivi
tydur
ingpr
oje
cti
mpl
eme
nta
tion.
The
rea
reas
etoft
ool
swhi
chc
anbede
vel
ope
dandus
edt
ocont
rolwor
kdu
ring
i
mpl
eme
nta
tion.
Be
for
ethe
set
ool
sar
eus
ed,t
hei
mpor
tanc
etoe
sta
bli
sht
hepe
rfor
mst
anda
rdsf
or
t
hepr
oje
ct.Thee
achs
tanda
rdsa
ret
hege
ner
icone
s(c
ost
,ti
me,qua
lit
y)
Wea
lsone
edt
ocomeupwi
thawa
yofmoni
tor
inge
acht
obedone
.
Wea
lsoc
omeupwi
thas
yst
emf
orl
ooki
ngc
orr
ect
ivea
cti
on.Thi
sise
spe
cia
lly
i
mpor
tantbe
caus
epl
anne
dea
chma
ynotbet
hes
amea
sac
tua
lone
I
nes
tabl
is
hings
tanda
rdsf
ort
hepr
oje
ct,weha
vet
ode
cideont
hes
copeoft
he
pr
oje
ct.
Thes
copeoft
hepr
oje
ctma
ybee
xpl
aine
dfr
omt
ope
rspe
cti
ves
;-
(
i)Pr
oduc
tsc
ope
Ar
ere
pai
ri
ngt
hef
eat
urea
ndf
unc
tionst
obei
ncl
ude
dint
hepa
thors
ervi
ce
e
.g.de
vel
opi
nga
ninf
orma
tions
yst
emf
orma
nagi
ngs
tude
nt’
sre
cor
dss
cope
.
Equi
pme
nt,s
oft
war
e
(
ii
) Pr
oje
ctSc
ope
Ar
ere
pai
rst
othewor
ktha
tmus
tbedonei
nor
dert
ode
live
rapr
oduc
tort
he
s
pec
ifi
edpr
act
icea
ndf
air
?
Thepr
oje
ctma
nage
rwi
llber
espons
ibl
eforma
nagi
ngt
hes
copeoft
he
pr
oje
ct.
Pr
oje
cts
copema
nage
menti
nvol
vesa
llt
hepr
oce
ssorne
ces
sar
ytoc
hoi
ce
t
hatt
hewa
ite
rpr
oje
cti
ncl
ude
sal
lth
ewor
kre
qui
reda
ndonl
ythewor
k

6|
Page
 r
equi
redt
ocompl
etef
rom t
hepr
oje
cts
ucc
ess
ful
ly.Thusa
lsopr
ima
ril
y
c
onc
erne
dwi
thde
fini
nga
ndc
ont
rol
li
ngwha
tisa
ndwha
tinc
lude
dint
he
pr
oje
ct

Anumbe
roft
ool
sar
ede
vel
ope
dtohe
lpc
ont
rolt
hepr
oje
ct.Thi
sinc
ludet
hef
far
e
i
npr
oje
cts
pec
ial
iza
tion.
(
i) Gr
antc
har
ts
(
ii
) Wor
kBr
eakd
owns
truc
tur
e
(
ii
i) Re
spons
ibi
li
tyMa
tri
x
(
iv) Pr
oje
ctma
nage
mentma
nua
l
(
v) Pr
oje
ctc
ont
rolc
har
t
(
vi) Cont
rolpoi
nti
dent
if
ica
tion
(
vii
) Mi
ll
st
onec
har
ts
(
vii
i) Budge
tcont
rolc
har
t
(
ix) Qua
lit
ycont
rolt
ool
se.
g.ABCAna
lys
is,Qua
lit
ycont
rolc
har
ts,
a
ndpi
ctur
edi
agr
ams
.
a
) Gr
antc
har
ts
Ar
eus
edf
orma
nagi
ngr
esour
cea
lloc
ati
ona
gai
nstt
ime
.E.
g.l
abourhour
sne
ede
d.
De
signe
dbyHe
nryGr
anta
ndma
inl
yus
edi
ncons
truc
tion

7|
Page
b) Wor
kBr
eakdowns
truc
tur
e(WBS)
AWor
kbr
eakdowns
truc
tur
ess
howst
hede
compos
it
ionofapr
oje
cti
ntos
ub
pr
oje
cta
nda
cti
vit
iesi
tisade
live
rabl
eor
ient
edgr
oupi
ngofpr
oje
cte
leme
ntst
hat
or
gani
zea
ndde
fine
sthet
ota
lsc
opeoft
hepr
oje
ct.
Thewor
knoti
nawor
kbr
eakdowns
truc
tur
eswoul
dbec
ons
ide
redout
si
det
he
s
copeoft
hepr
oje
ct.Thewor
kbr
eakdowns
truc
tur
es.I
sapr
oje
ctwor
kequi
val
ent
oft
hepa
thbi
llofma
ter
ial
sinma
nuf
act
uri
ng?
8|
Page
e
ache
ache
ache
ache
ache
ache
ach
eac
hea
che
ach
eac
hea
che
ache
ache
ache
ache
ache
ache
a
che
ache
ache
ache
ache
ache
ache
ach
c
) Re
spons
ibi
li
tyma
tri
x
Ar
eindi
cat
ingwhoi
sre
spons
ibl
efore
achki
ndoft
hewor
kinapr
oje
ct.I
tshows
t
hes
har
ingofr
espons
ibi
li
tyi
napr
oje
ct.I
t’
sspe
cif
iedbyt
hepr
oje
ctor
gani
zat
ion
s
truc
tur
e.
St
ruc
tur
e-f
ina
l
-
che
ckf
romma
nage
mentpr
act
ice
VCT

wa
lls f
it
ti
ngs l
ands
capi
ng Fe
nci
ng

Wait
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ell
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str
oom Eati
ng
Room r
oom room

d) Pr
oje
ctMa
nage
mentMa
nua
l
I
tindi
cat
eshowe
acha
cti
vit
yint
hepr
oje
cts
houl
dbeunde
rta
ken/
condi
ti
on.Ani
s
ave
ryi
mpor
tanta
spe
ctofi
mpl
eme
nta
tionbe
caus
eite
nsur
esc
ont
inui
ng,oft
he
9|
Page
pr
oje
cto
rsi
mil
arpr
oje
cts
.Thust
hisi
sthedoc
ume
nta
tionoft
hepr
oje
ct.Thi
sisa
pr
ere
qui
si
teoft
heI
SOc
ert
if
ica
ti
on.

e
) Mi
les
tonec
har
t
Re
pre
sen
tsabr
oad-
brus
hpi
ctur
eofapr
oje
ctss
che
dul
eandc
ont
rolda
tes
.Its
hows
t
heke
yeve
ntst
hata
rec
lea
rlyve
rif
iabl
ebyot
her
sort
hatr
equi
rea
ppr
ais
albe
for
e
t
hepr
oje
ctc
anpr
oce
edke
ymi
les
tone
sofKe
nyas
inc
e1963

De
athofKe
nya
tta& At
tempt
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ggi
ng Mot
to
I
nde
pende
nce Nya
yoLe
ade
rshi
pcoop Que
uin
g
Por
ti
on/c
las
hes
1963 1978 1982 1988
1992

Bomb Ne
wcua
Bl
ast Ra
inbow
1998 2002
Milest
one Sched
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me?Noma
ter
ial
s,s
takee
tc
Pr
oje
ctc
ont
rolc
har
t

10|
Page
Ar
eus
est
hebudge
tands
che
dul
edpl
an,i
naqui
cks
tat
usr
epor
toft
hepr
oje
ct.I
t
c
ompa
resa
ctua
ltopl
anne
dea
ch,c
alc
ula
test
heva
ria
nceofe
achc
ompl
et
eds
tep
a
ndt
all
ythec
ommut
at
iveva
ria
ncef
ort
hepr
oje
ctweus
ethewor
kbr
eakdown
s
truc
tur
e(wor
kbr
eakdowns
truc
tur
es)t
oide
nti
fya
llt
hes
ubmi
tsoft
hepr
oje
cta
nd
t
henl
is
tthet
imet
ocompl
etee
ach.Wet
henl
is
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xpe
cte
dcos
tofe
acha
nda
s
e
achi
scompl
ete
d,wer
ecor
dth
eac
tua
lti
mea
ndc
ost
.Va
ria
nce
sar
ecomput
ed
f
romt
hes
eanda
ccumul
ate
d.

Pr
oje
cts
tep Budge
t Ac
tua
l Va
ria
nce Re
-ma
rke
r
St
ep
1 40 35 5
2 20 36 (
15)
3
4
5
6

a
) Budge
tcont
rolc
har
t
Ar
eit
’st
otype
s/va
rie
tie
s:-
(
i) I
t’
sal
is
ti
ngofs
ub,un
itsofapr
oje
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act
ualc
ostc
ompa
redt
othe+
budge
t.Thusi
t’
ssi
mil
art
othepr
oje
ctc
ont
rolc
har
t.The
yca
nbe
c
omput
erge
ner
ate
dorma
nua
llyge
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ate
d.
(
ii
) I
tca
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aphofbudge
tedc
ost
scompa
redt
oac
tua
lcos
ts.The
se
gr
aphsc
anbeba
rorl
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aphs
.
Aba
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aphr
ela
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cts
ubuni
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ine
gr
aphsr
ela
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ost
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ctua
lcos
tsove
rti
me.

11|
Page
 c
ost Ac
tua
l

budge
t

Ti
me

h) Cont
rolp
ointi
dent
if
ica
tion:i
the
lpsi
ncont
rol
li
ngapr
oje
ct
byi
dent
if
yingwha
tisl
ike
lyt
ogous
inge
achoft
hepr
oje
ctpa
rame
ter
s.I
tal
so
i
ndi
cat
eswhe
nandhowyouwi
llknowt
hats
/t
hingi
sami
ssa
ndwha
ttodo.And
wha
ttod
oifa
ndwhe
nthi
soc
cur
s.

12|
Page
 TOPI CSEVEN:MONITORI
NGANDEVALUATI ON
M &Ea
rec
rit
ica
lact
ivi
ti
esa
ndi
nte
gra
lpa
rtoft
hepr
oje
ctma
nage
mentpr
oce
ss.
-
Alt
hought
heya
reus
edt
oge
the
rands
ome
ti
mesi
nte
rcha
nge
abl
eiti
simpor
tantt
o
di
st
ingui
shbe
twe
ent
het
wo.
-
Proj
ectmoni
tor
ingr
efe
rst
othee
achc
oll
ect
ion,a
nana
lys
isus
eandr
epor
tsof
i
nfor
mat
iona
boutpr
oje
cti
mpl
eme
nta
tioni
sofma
tthei
mpl
eme
nta
lpr
ogr
essc
oul
d
bec
ompa
redwi
thpl
anne
dpe
rfor
manc
eanda
cti
ont
ake
ntona
mea
nyga
pst
hat
mi
ghte
xis
t.Anyi
nfor
mat
iont
hati
snotus
edt
ocont
rolt
hepr
oje
ctwi
lln
otbe
c
ons
ide
reda
smoni
tor
ing.
-
Proj
ect
-moni
tor
ingi
sac
ont
inuouspr
oce
sst
hroughoutt
hei
mpl
eme
nta
tionoft
he
pr
oje
ct
Moni
tor
ings
erve
sandi
mpor
tan
tfunc
ti
ons
(
1) Moni
tor
inghe
lpst
hepr
oje
ctma
nage
randot
hers
take
hol
dert
ode
cis
ion
a
ime
dati
mpr
ovi
ngt
hepr
oje
ct.
(
2) Ens
urea
ccount
abi
li
tyt
oal
lthos
ewhoha
sst
ake
hol
deri
nthepr
oje
ct
(
3) Al
lowst
hepr
oje
ctma
nage
mentt
oide
nti
fyi
mpa
ctoft
hepr
oje
ct,on
va
riouspa
rti
esi
nvol
ved
Proj
ectmonit
oringisani nt
e r
nalproj
ectact
ivi
tyitisusefulLac
c es
singtheu s
eof
proj
ectre
sourc
es( money,nor malres
ources
,ma t
erial
se t
c)L.ac
c or
da ncewit
ht he
appr
ovedworkpl anbudge t
.
Ital
soensur
esthattheachievementofint
endedoutputisti
melyandcos tef
fec
ti
ve
Moni
tor
inga
lsoa
ssi
st
sinmoni
tor
inga
lsoa
ssi
st
sinmoni
tor
ingove
ral
lea
chwi
th
whi
cht
hepr
oje
cti
simpl
eme
nte
d.
EVALUATI
ON
Eva
lua
tioni
sadj
ust
mentonhowt
hepr
oje
ctha
sbe
eni
mpl
eme
nte
dandt
her
esul
ts
oft
hepr
oje
ct:
I
tha
s2-
mai
npur
pos
es;
a
) Toe
nqui
rei
ntot
hef
eas
ibi
li
tyofpr
oje
ctde
sign
13|
Page
 b) Toa
sse
sst
heove
ral
limpa
ctoft
hepr
oje
ct

Pr
oje
cte
val
uat
ioni
sconduc
teda
t3-
leve
ls
a
) EX-
ant
eeva
lua
tion/
ini
ti
ale
val
uat
ion
b) Conc
urr
ent
/ongoi
nge
val
uat
ion
c
) EXpos
tore
val
uat
ion
a
) EX-
ANTEEVALUATI
ON
-
Unde
rta
kenbe
for
epr
oje
cts
tar
t.
-Donedur
ingpr
oje
cte
val
uat
iona
nda
ppr
ais
als
tage
-
Iti
saj
udgme
nta
boutpr
oje
ct’
swi
tht
hrought
hef
eas
ibi
li
tya
nal
ysi
s
-
Thepur
pos
eist
otr
ytof
itt
hepr
oje
cti
nthee
nvi
ronme
nta
ndt
ofor
eca
st/pr
edi
ct
s
ucc
ess
b) CONCURRENTEVALUATI
ON
-
Thi
sist
hee
val
uat
iont
hati
sun
der
take
ndur
ingpr
oje
cti
mpl
eme
nta
ti
ona
ndi
tthi
s
t
oana
lys
ether
ela
ti
ons
hipbe
twe
ent
hepr
oje
cts
,out
puta
ndi
tse
ffe
ctf
ort
he
pur
pos
eofa
dapt
ingt
hepr
oje
ctt
othec
hange
stot
hee
nvi
ronme
nt.
-
Ite
xami
nes5-ma
jora
spe
ctsoft
hepr
oje
ct
(
1) Thebe
nef
it
sinr
ela
ti
ont
oobj
ect
ive
s
(
2) Thec
osti
nre
lat
iont
obudge
t
(
3) Ti
mei
nre
lat
iont
osc
hedul
e
(
4) Qua
lit
yinr
ela
tiont
ospe
cif
ica
tions
(
5) Pe
opl
einr
ela
tiont
oSk
illr
equi
reme
nt,a
dequa
te
(
6) Peopl
einr
ela
tiont
oat
ti
tude
set
c.
c) EXPOSEEVALUATI ON/I
MPACTEVALUATI
ON
-
Unde
rta
kena
fte
rthepr
oje
ctha
sbe
eni
mpl
eme
nte
d
-
Exa
mine
sthee
ffe
cti
vene
ssofapr
oje
cti
nac
hie
vingt
his
St
art
edgoa
lsa
nda
nyot
herc
hange
sthepr
oje
ctma
yha
vebr
oughta
bout
14|
Page
 -
donebymos
tpr
oje
ct
-
looka
tas
pec
t
I
mpa
ctt
oimpa
ctofpr
oje
ctonpe
opl
e
I
mpa
ctt
oli
vings
teps
Empl
oyme
nt
Re
duc
tioni
ncr
eas
ewi
thc
rimer
ate
sinc
rea
sei
nde
cre
ase
s.
Re
asonswhypr
oje
ctsf
aila
ndr
ecomme
nda
tion
(
1) La
ckofmoni
tor
inga
nde
val
uat
ion
(
2) Ma
nma
dea
ndna
tur
alc
ala
mit
ies
(
3) Pol
it
ica
lint
erf
ere
nce
;cor
rupt
ion
(
4) La
cke
xpe
rti
sei
nimpl
eme
nta
l
(
5) La
ckofs
take
hol
der
ssuppor
tsi
nimpl
eme
nta
l
(
6) Ri
gidpl
antpr
opor
ti
onofpr
oje
cts5/
30
(
7) De
laye
dre
sour
ce
(
8) Pr
oje
cts
ele
cti
on
(
9) Expe
rti
se:ove
rse
as
(
10) Coor
dina
ting:t
eamwor
ksa
nfr
omdi
ff
ere
ntde
vel
opme
nt
(
11) Pr
ocur
eme
ntoft
her
ights
kil
ls
Sol
uti
on
-
Conduc
tingf
eas
ibi
li
tys
tudi
es
-
Tra
int
oac
qui
res
kil
l
-
Moni
torpr
oje
cts
tri
ctl
y
-
Out
sour
ce
-
Cor
por
atewi
ths
take
hol
der
.
-
Eff
ici
enta
lloc
ate7r
esour
ces
PROCESSOFM &E
-
Proj
ectM &Ei
sapr
oce
ssorme
thodol
ogya
soppos
edt
oaone
-of
funde
rta
king
15|
Page
-
M &Egoe
sthr
ought
hef
oll
owi
ngs
teps
;
(
1) Shoul
dbeal
ongf
ramepr
epa
redf
ort
hepr
oje
ct
(
2) Spe
cif
ica
tionoft
hei
nfo
rma
tionr
equi
red
(
3) I
dent
if
ica
tionoft
hes
our
cesofi
nfor
mat
ion
(
4) For
mul
at
ionofr
ese
arc
hde
sign-i
tsi
nfor
mat
ion wi
llbe
c
oll
ect
ed,howt
oeva
lua
tet
hei
nfor
mat
iont
hisi
sitongoi
ngt
obea
nal
yze
d,
I
tsa
vai
la
ble
,re
lia
bil
it
y,va
lidi
ty,a
dequa
cy
-
Cle
arr
ese
arc
hde
signorM &E
(
5) De
ter
mina
tionoft
het
imi
ngoft
her
ese
arc
hi.
e.whe
nthe
r
ese
arc
hist
obedone
,whe
niti
sdoi
ngt
ober
ele
vant
,whe
nre
por
ti
ngi
stobedone
&ha
sof
tent
hes
tudi
ess
houl
dbedonebyt
het
imi
ngofr
ese
arc
hwi
llbei
nfl
uen
ced
a
) Ava
ila
bil
it
yofr
esour
ces
:thef
unds
,pe
rsons
b) Pr
oje
ctl
if
e
c
) Whe
nthepr
oje
cti
sexpe
cte
dtoge
ner
ateout
put
s/i
sha
ve
i
mpa
cta
sef
fec
ts
d) Ti
mer
equ
ire
dtoc
ompl
etet
hes
tudi
esa
ndt
ore
por
tthe
f
indi
ngs
(
6) Na
tur
eofr
epor
ti
ngoft
hef
indi
ngs
De
ter
min
ewhoi
stobegi
vent
hei
nfor
mat
iona
ndi
nwha
tfi
rm
-
donor
s
Who-ma
nage
ment
MERe
por
tpol
it
ici
ans
:endoe
sn’
tpr
oje
cts
Pr
oje
ctM&Er
epor
twi
llbeus
efula
ndma
nagef
ulf
il
sit
spur
pos
eifi
tme
etst
he
f
oll
owi
ng
Condi
ti
ons
:
(
1) TheM &Er
epo
rtmos
tat
tr
actt
hede
cis
ionma
kinga
tte
nti
on
(
2) De
cis
ionma
kingsmus
tha
vec
onf
ide
ncei
nther
epor
tthe
ref
orei
t
16|
Page
 s
houl
dasa
ccur
atea
spos
sibl
e
(
3) Thef
indi
ngsoft
hes
tudys
houl
dshowt
hea
lte
rna
ti
vesf
orf
utur
e
a
cti
ons(
rec
omme
nda
tions
)
(
4) Ther
epor
tmu
stbewr
it
teni
nsuc
hawa
ytha
tmoni
tor
inga
nd
e
val
uat
ingbe
cameat
oolf
orr
ati
ona
lde
cis
ionma
kinga
sop
pos
ed
t
oemot
iona
lre
act
ions
.
St
ep7:As
signi
ngr
espons
ibi
li
ty
De
cideonwhos
houl
dca
rryar
espons
ibi
li
tyofM &e
-
Isi
tout
si
des
/cons
ult
ant
s
-
ori
nsi
der
-
orbot
h.

17|
Page
 TOPICEIGHT:PROJ ECTTERMI NATI
ON
 Typesoft
erminat
ions
 Howa ndwhyprojectster
mina
te
 Typi
calte
rminat
ionac t
ivi
ti
es
 Needforaproj
ecthist
ory

I
ntr
oduc
tion

 Te
rmi
nat
ionr
are
lyha
smuc
himpa
ctont
echni
cals
ucc
essor
f
ail
ure...
 Butahugeimpac tonotherar
eas
 Resi
duala tt
it
ude st oward the proj
ect(cli
ent
,s e
nior
mana
geme
nt,a
ndpr
ojec
tteam)
 Succe
ssofsubsequentproj
ect
s
 Soitmakessens
et oplanandexecut
eter
mina
tionwit
hcare

WhenDoPr oj
ect
sTer
minat
e?
 Upons ucc
essf
ulcomple
tion,or...
 Whe ntheorga
niz
a t
ioni
snol ongerwil
li
ngtoinve
stt
heti
me
andcos
trequi
redtocomple
tetheproject
,gi
ve nitscurr
entsta
tusandexpe
cted
out
come.

MostCommonRe as
onsPr oj
ectsTer
minate
1.Lowpr oba bil
it
yoft echni
cal
/commercia
ls uc
ces
s
2.Lowpr ofit
a bi
lit
y/ROI/marketpot
ent
ial
3.Dama gingc ostgrowth
4.Changei nc ompe t
it
ivefact
ors/
marketneeds
5.Unresolvabletechnica
lproblems
6.Higherpriorit
yofc ompe t
ingproj
ect
s
7.Schedulede la
ys

De
cis
ionSt
ruc
tur
eforaTe
rmi
nat
ionDe
cis
ion

18|
Page
FOURVARI ETIESOFPROJ ECTTERMI NATION
1.“Ter
minat
ionbyext
inction”
 Projec thass ucc
essfull
ycomple
ted,oritha
sfa
ile
d
 Na turalpas si
ng,or“ t
ermi
nat
ionbymur der
”
 Eitherwa y,projectsubst
anc
ec e
a s
es,butmuchwor
kne
eds
tobedone
 Admi nist
ra t
ive
 Orga nizat
i onal

2.“Termi
nati
onbya
dditi
on”
 The proj
ect be comesaf ormalpa
rtof t
he pa
rent
organi
zat
ion
 Peopl
e,mater
ial
,fa
cil
it
iest
rans
it
ion
 TheexampleofNucor

3.“
Ter
mina
tionbyi
ntegra
tion”
 Proj
ec ta
sse
tsa
redi
st
ri
but
edt
oanda
bsor
bedbyt
hepa
rent

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rmi
nat
ionbys
tarva
tion”
 Withdrawa
lof“li
fesupport
”
 Cans ave“f
ace
,”avoide mbar
ras
sme
nt,e
vadea
dmi
ssi
onof
def
eat

TYPICALTERMI NATIONACTI VITIES

Inge
neral,t
her
ear
ese
venca
tegor
iesofte
rmi
nat
iont
asks
.Exa
mpl
esofa
cti
vit
ie
s:
1.Pe
rsonnel
19|
Page
 De ali
ngwi t
h“ t
raumaoft ermi nation”
 Finding“ home s”fort heteam
 Whowi l
l“ closethedoor s?
”
2.Operations/Logist
ics/
Ma nufacturing
 Re t
hinkings yst
e ms
 Provis i
onsf ortraining,ma intena nce,s
pare
s
3.Accou nti
nga ndFi
na nce
 Ac countsc loseda nda udited
 Re s
our cestra nsfer
red
4.Enginee r
ing
 Drawi ngsc ompl et
e/onf il
e
 Cha ngep roc eduresc l
a r
ifi
ed
5.Inf
orma tionSys t
ems
 Conf igurat
iona nddoc ume ntationi npla
ce
 Systemsi nte grated
6.Ma r
ke ti
ng
 Salesa ndp romot ione ffor
tsi nline
7.Admi nist
r a
tive
 Allor ganizationsa wa reofc hange

ADESI
GNFORPROJ
ECTTERMI
NATI
ON

PROJ
ECTHI
STORY
20|
Page
Oneofthemajorai
msoft e
rmi
nat
ionisdevel
opme
nta
ndt
rans
mit
talof“
les
sons
l
ear
ned”tof
uturepr
ojec
ts
Onewaytodothati
sthroughapr
ojec
this
tory

ContentsofaPr ojectHist
or y
1.Projec tPerformanc e
 Wha twa sa chi
eved;suc
cess
es,cha
llenges
,failures
2.Admi nistr
a t
ivePe r
forma nce
 Reports,me eti
ngs,proj
ectr
eviewprocedures;HR,f inanc
ial
proc
es s
es
3.Or ganizationStructur
e
 Hows tr
uctureevolve
d,howitaide
d/
impededpr ogr ess
4.Projec tandAdmi nist
rat
iveTe ams
 Per
for manc eoftheproj
ectt
eam,recomme ndations
5.Projec tMa na ge
me ntTec hnique s
 Pl
anni ng,budge ti
ng,s c
heduli
ng,r i
sk ma nageme nt,et
c.:
whatwor ke d,wha tdidn’t

Cha l
lenge
stoMe ani
ngfulProjectHist
orie
s
 Sincet heprojec
thistoryhassomuc hpote
ntia
lbe ne
fit
,why
isitof
tendonepoorl
y,ornota tall
?
 Pos s
iblereasons
 Noones eesitastheirjob
 PM ha sma nyot herp ri
ori
ti
es,especi
all
ya sprojectwinds
down
 Longdur a
tionproject
sme anma nyPMs ,voluminousrec
or d,
lit
tl
ecorpora
tememory
 PMsma ybemor eattunedtolookingforwardthanlooking
back

21|
Page
TOPI
CNI
NE:THENEW PROJ
ECTMANAGEMENT

ByJ
.Da
vids
onFr
ame

Thene
wbusi
nessenvir
onme
nt:
 Downsi
zing
 Fl
att
eni
ng
 EmpoweringEmpl
oye
es
 Out
sourc
ing

Thene
wproje
ctma na geme nt:
 Needforac ustome rfo cus
 Needtoa c quirenont radi t
iona lpr ojec tma na ge me ntskill
s
“ ha rd”s kill
s—ba si
csofc ont r
a ct
ing,bus inessfinance,int
e grat
ed
cost/sche dulec ont r
ol,me asuringwor kpe rforma nce,monit or
ing
qua lit
y,a ndc on duc t
ingr iska na l
ys i
s
“ sof t
”s kills
—n e gotiat
ing,ma na gingc hange ,beingpol i
ti
ca ll
y
astute,andunde rs t
andingt hene edsa ndwa ntsofthepe oplethey
dea lwi t
h( inc l
udi ngc us tome r
s ,peers,s taffandma nagers)
 Redef
iner ol eofpr ojec tma na ge rs
 Pr ima r
ilys eena si mple me ntersbutne e dne wpa ra
digm
 Pr oj ectma na gersmus tbec ustome rf oc use d
 Pr oj ectma na gersmus tbee mpowe redt oope rateeffect
ively
 Ma jor i
tyoft he irde ci
sionsc anbema dei ndepende ntl
ywi thout
havi ngtopa ssth rought hec hainofc omma nd
 The ypos sesssubs t
antialpr ofitandl os sre sponsibi
liti
es
 The ys eet hems e lveslarge l
ya si ndepe nde ntbusinesspersons
runni ngt heirownbus ine ss

Tr
ait
softhenewproje
ctmana ge
r:
 Thoroughunder
sta
ndingofproje
ctgoal
s
 Capableofunde
rst
andingsta
ffneeds

22|
Page
  Goodhe adf orde t
ail
s
 Str
ongc ommi tmenttotheproje
ct(wil
li
ngtoputinlonghoursont
hepr
oje
ct)
 Abletoc opewi t
hsetbacksanddis
appoint
ments
 Goodne gotiationski
lls
 Resul
tsor i
ent edandprac t
ica
l
 Costcons c
iousa ndposse s
sesbasi
cbusi
nessski
ll
s
 Poli
ti
callysa vvy(awa r
eo fwhatNOTt odoaswe l
laswha tt
odo)
 Hightoleranc eforambiguity

Commondua l
iti
espr ojec tma na gersf ace :
 Seeingthebigpi ctur evs .pa yinga ttentiont ode t
ail
s
 Ma int
aini
ngf irmne ssvs .be ingf lexible
 Be i
ngha rdvs.be i
ngs oftinde alingwi t
hpe opl e
 Possess
inga na lyticals kill
svs .trus ti
ngone ’sinsti
nc t
s
Changema nageme nts trategies:
 De ve l
opapr o-c ha ngemi nd- se t
 De ve l
opa ppr ec i
a t
ionofc ha nget hroughe duc a
tionandt r
aini
ng
 Enc ourageups ide -downt hi nki ngs uc ha s:
o Ope ra ti
onsa ndma inte na ncee ffortss houldbet r
eat
eda spartoft
he
proje ctlifec ycle
o Te chni calpe oplemus tbea depta tunde rs
tandingandofferi
ng
busine sss ol uti
o nst opr oblems
o The rei snos ucht hinga s“ the”c ustome r.The rear
ea l
wa ys
mul tiplec us tome rs
o Ake yf unc t
iono fma na ge r
si stos upporttheirworkers
,nott o
directt he m
 Us ec r
isestos ha keups tagna nta t
titude s

Tr
ait
sofeff
ectiveNe edsAnal
yst
s:
 Str
onga bil
itytodealwi
thcus
tome
rsandextr
actf
romt
hemas
ens
eofwha
t
the
yt r
ulyne ed
 Goodpol it
icalski
ll
s
 Technic
a ll
yc ompete
nt
 Open-minde dandposse
ssagoodi
magina
tion
 Hightoleranceforambi
gui
ty
 Arti
culat
e

St
epsf
ori
mpr
ovi
ngne
edsde
fini
ti
on:
23|
Page
 1.Unde r
sta
ndthepresentsys
teminit
stot
alc
ont
ext
2.Ide
ntifymult
ipl
ec us
tomersandpri
ori
ti
zet
hei
rnee
ds
3.Puttoget
heraneeds-
de f
ini
ngtas
kforce
4.Educatethec
ustomers

Or
gani
z i
ngt oa chie vec us tome rs at
isfa ction:
1.Re f
or mul ationofc or por atec ulture --Cor poratec ultur emus tbec ha nge dto
suppor tac us t
ome r-foc us eda ppr oa ch.Pr ojectma na ge r
sa ndot herpr oj
ect
staf
f—t hef ront l
inet roopse nc ount e ringc us t
ome rsonada ilyba si
s —mus tbe
empowe redt odowha ti ttakest oa ssur ec ust
ome rsa tisfaction
 Foc usonva lue
 Tol eratea nde nc our a geups ide-downt hinking
 Sha repowe rt hroughoutor ga niza tion
 Ta keal ong- termvi ew
 As sumet ota lc us tome rfoc us
2.Focusons ta bilitya ndc ont i
nui ty--De ve loppr ojec t
sa sisla ndsofs tabili
tyin
as e
aofc ha nge
3.As s
umel ifec yc lepe r spe cti
ve --Or ga niz ationmus ta doptt otallifec yc le
outl
ookoni tspr oje cte fforts.Pr oje cts taffmus tdot he i
rwor kwi t
honee ye
alwa ysf ocus e donope rationsa ndma in t
e nanceoff ina lpr oduc t.
4.Establishme c ha nismst oa ssurec ustome rs at
isfaction—de velopme ntof
me t
hodsa ndpr oc edur e stoe ns urec us tome rsensibilitieswi llnotbevi ol
ate
d
byove rsight sa nds loppypr oc edur es .
5.Strengthe nc apa bi l
itie sofpr ojec tsta ff--Eve r
ythingpos siblemus tbedo neto
impr ovet hec a pa bilitieso fpr oje cts taff .Ba si
cbus ine sss kills:c apital
budge tingt e chni que s,c ont r
ac ti
ngba sic s,de ci
sion- ma kingme thodol ogies,
forecasting,a ndr ea dingf inanc ials tate me nts.

Whatt
odowhe nc us t
ome rsdon ’
tc ooperat
e :
1.Re mi ndcus tome rorga ni
za t
ionofi t
sc ontract
ualobl i
gati
ons
2.Empha siz
eve ryc l
earlya ttheouts e
toft heprojecttheimport
ancetoproje
ct
succ essofme et
ingc er t
ainke ymi les
tone s
,incl
udi ngthosere
qui
ring
custome rinput s.Pe riodi
c all
yr emindt hemofupc omingobli
gat
ions.
3.Establ i
shas te
eringc ommi t
teetoove rseeprojectprogress
.Me mbersshould
includeindi vidualsfromc ustome rorganizat
iona swe l
lasthepr
oject
orga niza
tion.

Pol
iti
cs:t
heproc
e s
swherebyatt
emptsaremadet
oac
hie
vegoa
lst
hrough
acc
ommoda t
ionandthee
xe r
cis
eofinfl
uence
.
24|
Page
Pl
aye
rstoconte
ndwi t
hinpr oje
ctenvir
onme nt
:
 Bosses
 Peer
s
 Funct
ionalmanagerscontr
oll
ingresourc
es
 Cust
ome rs
 Vendors
 Other
s(purcha
sing,infor
mationres
ourcemana
geme
nt,c
ont
rac
ts,s
ecr
eta
rie
s)

Commonpol i
ti
c alpitf
all
s:
 Accepti
ngt hingsa tfac
eva lue—goodpol it
ici
ansa r
ea deptatpenet
rat
ing
t
hrought hes uperf
icia
ltoide nti
fythereali
ssues.
I ns
ensit
ivityt opolit
ica
lrealiti
es
 Thehype r-polit
ici
an—be i
ngt oopoli
tic
al;purs
ue stoomuc hofagoodt h
ing
 Thehypo- politi
cia
n—unde rpe r
formspolit
ical
ly;avoidsorignore
s
somethi
ngt hatwil
lde f
ini
telya ff
ectthe
m.

Howtobecomemor epolit
icall
ye f
f ec
tive:
1.Developapos it
iveatti
tudetowa rdpol i
tic
s
2.Layas oli
dfounda ti
onf orpolit
icalacti
onbyde vel
opi
ngabaseofaut
hori
ty
3.Ide
ntifykeye l
eme ntsofthee nvironment
 Whoa retheplayers?
 Wha tar
ethegoa lsofthepl ayers?
 Whoa mI ?Knowt hysel
f( s
trengths,weakne s
ses
)andhowcoll
eague
s
viewyou.
4.Defi
net heproblem,the nidenti
fya ndimpl e
me ntacours
eofact
ion

Type
sofaut
hor i
ty:(PMss houldde velopasmanyba
sesofa
uthor
it
yaspos
sibl
e)
 For
ma lauthorit
y
 Chari
sma ti
cauthori
ty
 Pur
se-st
ringauthori
ty
 Bur
e a
ucra t
icauthor
ity
 Aut
horit
yba s
edonc ompe tenc e
 Fol
low-thruauthori
ty
 Aut
horit
yba s
edont rust
 Manageme ntbyi nt
imidati
on
 Aut
horit
yba s
edonphys icala ppear
anc
e
 Aut
horit
yoft hei ni
ti
ati
ve
25|
Page
  Cr
isi
saut
hori
ty
 Ol
dboynetwork/
thes
ist
erhood

PM mus
tknowhowt oma naget h e
irownma nagers:
 Art
iculat
et hene edf orsuppor t;ma int
ainvisibi
lit
y
o Re gularstat
usbr i
efings
o Re gularwr i
ttenr eports
 Deal
ingwi tht hetrulynon- suppor ti
vebos s
o Moveont obe tt
e rjobe nvironme nt
o Ove rwhe lmt henon- suppor ti
vebos swi t
hc ompetence;ma kema na
ger
lookgood
o De veloppowe rfula l
li
es( boss’sboss,ma nagerswhoc ontrolre
source
s,
bos s
’spe ers
)whoc anpr otectPM f r
omt heconsequencesof
ma nager ’
sba dma nageme ntpracti
ces;couldbackfir
e—ot hersma y
perceivePM a sap oli
ti
c alope r
atorandnotat eampl ayer

Bui
ldi
ngte
amswi thbor rowe dr esour ces:
 Maketheteama sta ngiblea spos si
ble
o Hol dpr oduc tiveme etings
o Cr eat
et ea ms pac e
o Cr eat
et ea m“ si
gns ”
o Publicizet ea me fforts
 Devel
oprewa r dsf orgoodbe havior
 Devel
ope f
fec tivepe r
s onalt ouc h
o Providepos i
tivef e edba ckonpe rf
orma nce
o Publiclya cknowl edgegoodpe rf
orma nce
o Showi nte restint eamme mbers
o Bea“ shi rtsleeve ”ma nager
o Bea cce ss i
ble
o Bec leari nde fi
ni ngyoure xpect
ati
onsa ndindesc
ribi
ngwork
r
equireme nts
o Bec ons istenta nds ticktot herul
es
o Empowe rt eamme mbe r
stoma kede cisi
ons
o Ac knowl edges pec i
a loc casi
ons(bir
thday,anni
versar
ies
)
o Whe nc riti
ca lmi lestone sha vebeenac hi
eved,c
elebra
tewit
h
mil
estonepa rti
es
o Don’ tpubl i
c l
yc rit
icizet eamme mbe rs
o Don’ tputbl ameont het eamwhe npr oble
msa r
ise
26|
Page
Ge
neralrul
e sfors e
lec t
ingprojects:
1.Bee xplicitaboutwha tisi mportantinchoosi
ngpr oje
cts
2.Identi
fye xplicitproceduresforc hoosi
ngprojects
,thenst
icktothem
3.Bepr epare dtor i
gorouslyc hal
lengea l
lass
e r
tat
ions
4.Co nst
ituteapr ojectselect
ionteamwhos eme mbersrepr
esentabroada
rra
y
ofs t
akehol der
s
5.Involveke ypr ojectpersonnelint hese
lect
ionprocess

Ca
usesofpoore st
ima t
ion:
I nexpe r
iencegue sse
rs
 Lackofc ontinui
tybetwee
nthepr
e-a
war
dandpos
t-a
war
dpha
ses
 Badt e
chnicalgue s
ses
 Cha ngest otheproject
 Psyc hologic
a lfa
ctors
 Lowba l
ling
 Politic
s

St
rat
egi
esfordeal
ingwithpoore
sti
ma t
es:
 Useda t
atoill
ustr
atet
hepr
oblemoflackofr
esour
ces
 Str
engthenchangemanage
me ntpr
oced
ures
 Pri
orit
izegoal
s

Type
sofe va l
uati
ons :
 Bid/nobi de valuation
 Bu sinesscasee va l
uati
on
 Feas ibil
it
ys t
udi es
 Tec hnicalevaluation
 Propos alevaluation
 Ac ceptancetes t
ing
 Postmor tems
 Perfor mancea ppraisal
s
 Au dits
 Qu alityassurance

Thest
ruc
tur
edwa l
k-t
hor
ough:
1.Thegroupbei
ngeval
uat
edchoose
sit
sjudgeandj
ury
2.Thegroupbei
ngeval
uat
eddete
rmine
stherul
esoft
heeva
lua
tione
ffor
ts
27|
Page
 3.Thegroupbei
nge valua
tedrunstheeval
ua t
ionme e
tings
4.Nouppe r
-l
evelmanagersshouldbepres
e ntatt
heeva l
uati
onses
sions
5.Cust
ome r
sshouldnotbepr es
entatt
hee valuat
ionse
s si
ons
6.Maint
aingooddoc umenta
tionthr
oughoutthewholee val
uati
onproce
ss

Rol
eofmeas
ur e
me ntinma nagi
ngprojec
ts:
 Es
tabl
ishi
ngc le
artarget
s
 Tr
acki
ngpe rfor
ma nce
 Rewar
ding/punis
hingbe h
avior
 Model
inga ndpredic
tingproj
ectper
for
manc
e

Appr
oac
hestoge nerat
eme asures
:
1.Gener
a t
ingme asure
sf r
ome xis
ti
ngda
ta
 Times heets
 Budge ts
 Previousschedule
s
 Stat
usr epor
ts
 Postmortems
2.Gener
a t
ingne wme asures
 Que s
tionnair
esandi nt
ervi
ews
 Directme as
ures/
us a
bil
ity

28|
Page