PROJECT PLANNING AND MANAGEMENT

INTRODUCTION

A. The Nature and Scope of Projects in Project Planning and Management

A project is defined as a temporary endeavour undertaken to create a unique product or service.

Temporary means that the project has a definite ending point and unique means that the product
or service differs in some distinguishing way from all similar products or services (PMI, 1996, as
cited in Ackah, 2016).

A project can be defined as an activity with a specific goal occupying a specific period of time
(Wild, 2002 as cited in Asare et al, 2017).

Projects, Gittinger (1972) claims, are the “cutting-edge” of development.

Hirschman (1967) calls them “privileged particles of the development process.”

Projects are the basic building blocks of development. Without successful project identification,
preparation and implementation, development plans are no more than wishes, and developing
nations would remain stagnant or regress.

Projects create productive assets. It is only through projects resources are converted into
productive assets. Since projects convert resources that lie idle into productive assets, projects
act as prime movers of economic development of any country (Nagarajan, 2012). In the process
of creating productive assets, projects optimize the process of resource allocation.

Projects are unique due to the fundamental differences that exist across projects, and that no
project is similar to another (Mir & Pinnington, 2014). Due to this, the causes are often unique to
certain industries and the performing countries’ systems (Amid et al., 2012), geographical
location (Ahsan & Gunawan, 2010), socio-cultural settings (Mukabeta et al., 2008).

It has the following advantages, which would seem to be the most important for the particular
needs of the developing countries in solving their critical problems (Stuckenbuck, 1981).

 It is a way of effectively identifying the most critical and urgent needs and for applying
the best priorities.
 It is a way of getting people to work effectively together.
 It is a way of efficiently using scarce resources, and for effectively allocating them where
they are most urgently needed. Effective utilization of scarce skilled personnel, as well as
raw materials and expensive equipment, is extremely important in all developing
countries.
 It is results-oriented and discourages the possibility of projects becoming a part of their
bureaucratic institution.

1
  It is a way of obtaining results faster and more efficiently (usually cheaper).
 It is a way of increasing the efficiency and effectiveness of government bureaucracies.
 Completing the projects on time and within budget (fulfilling the promises) will give
people more trust and confidence in their government, and will encourage the system to
be more responsive to public needs and expectations.

For nearly a quarter of a century, projects have also been the primary instruments for grant,
credit, loan, and technical aid to developing countries by international assistance agencies.

Recent assessments of development planning and administration, and of the lending practices of
assistance agencies by international evaluation commissions highlight the importance of well-
prepared and executed projects. As critical leverage, points in the development process, projects
translate plans into action.

B. Types of Projects

Quantifiable and Non-quantifiable Project

Quantifiable projects are those in which a plausible quantitative assessment of benefits can be
made. e.g. power generation, etc.

Non-quantifiable projects are those where such an assessment is not possible, e.g. health,
education and defense.

Sectorial Projects: project for specific sector e.g. agriculture and allied sector; irrigation and
power sector; industry and mining sector; transport and communication sector; social service
sector; and miscellaneous.

Techno-Economic projects: projects are sometimes classified on the basis of their techno-
economic characteristics, three main groups of classifications can be identified:

(a) Factor intensity–oriented classification; on the basis of this classification projects may be
classified as capital–intensive or labor-intensive depending upon whether large scale investment
in plant and machinery or human resources are involved;

(b) Causation–oriented classification; here projects are classified as demand-based or raw

materials-based projects;

(c) Magnitude-oriented classification; the size of investment forms the basis of classification.
Projects may thus, be classified as large-scale, medium-scale, or small-scale projects depending
upon the total project investment.

Financial Institutions classification: projects are classified according to their age and experience
and the purpose for which the project is being taken up, they are as follows: New projects;
Expansion projects; Modernization projects; Diversification projects.

2
Services Projects

Welfare projects; service projects; research and development projects; educational projects.

Projects in developing countries are of all sizes and degrees of complexity; however, each
country has many medium-sized to large projects which have the potential to make a major
impact on the future development of the country. The types of project most common in
developing countries, and which are considered to be the backbone of their developmental
efforts, include the following:

Public Housing, Literacy, Industrial Facilities, Commercial Buildings, Power Plants. Dams,
Irrigation Systems, Roads and Transportation, Water Purification Plants, Health and Sanitation
Facilities.

Examples of projects include construction of a bridge, highway, power plant, repair and
maintenance of an oil refinery or an airplane; design, development, and marketing of a new
product, research and development work, etc. (Asare et al, 2017).

Added to this list are a great number of necessary programmes in agriculture, education, law
enforcement, financial management, manpower training and mobilization, rural and urban
development, communications and public relations, social work, and many other areas sponsored
by the government (Stuckenbruck et al 1987).

Small projects, for the most part, are not real problems; it is the large projects, and especially the
medium-sized projects, that almost always present major problems for developing countries.

C. Plans and Projects

Virtually every developing country has a systematically elaborated national plan to hasten
economic growth and further a range of social objectives. Projects provide an important means
by which investment and other development expenditures foreseen in plans can be clarified and
realized. Sound development plans require good projects, just as good projects require sound
planning. The two are interdependent.

Well-analyzed projects often become the vehicle for obtaining outside assistance when both the
country and the external financing agency agree on specific project activity and know the amount
of resources involved, the timing of loan disbursements, and the benefits likely to be realized.
But project analysis should not be confined to only those investments for which external
financing will be sought.

Sound planning requires good projects, but effective project preparation and analysis must be set
in the framework of a broader development plan. Projects are a part of an overall development
strategy and a broader planning process; as such, they must fit appropriately.

3
Programme versus Project
A programme is a portfolio comprised of multiple projects that are managed and coordinated as
one unit with the objective of achieving common (often intangible) outcomes and benefits at
sector, country or even multi-country level.

A project is a temporary entity established to deliver specific (often tangible) outputs in line with
predefined time, cost and quality constraints. A project should always be defined and executed and
evaluated relative to an approved business plan which balances its costs, benefits and risks .

Project management is defined as an application of knowledge, skills, tools and techniques to

project activities to meet project requirements (Kloppenborg, 2012). This is accomplished
through the application and integration of the project management processes of initiation,
planning, executing, monitoring and controlling, and closing (PMI, 2004).

Initially the focus of research on projects was exclusively on the implementation of a single
project (Crawford et al, 2006). Project research in general now spans a variety of levels of
analysis. A concept such as the management of projects and the management by projects clearly
point to the current devotion of project research (Soderlund, 2004a &b).

F. Is Project Management a Panacea?

One cannot draw a definite conclusion as to whether project management is or is not a solution
for all the kinds of problems that developing countries are facing in regard to mobilizing their
resources and overcoming their administrative and management incapacities. However, this
approach does have the potential to help solve some of these problems, if and when it is correctly
used with careful consideration of local requirements and local conditions.

G. When is project management really needed?

Project management may be applied effectively to any ad hoc undertaking. If such an

undertaking is unique or unfamiliar, the need for project management is intensified. In some
cases, such as that of an undertaking whose successful accomplishment involves complex and
interdependent activities, a project manager can pull everything together to accomplish an
organizational goal (Cleland & Ireland, 2007). Unfortunately, project management will not
always be directly applicable. Small projects and those that are very simple or very repetitive
will not justify the use of project management. It should therefore be used judiciously, i.e. only
when the organizational climate looks likely to adapt successfully to its use, and only when its
advantages are really needed.

H. Guidelines in Implementing Projects

The probability of project management being successfully implemented can be greatly improved
by carefully choosing the organizational model, the project manager, and the personnel to be
involved in the project.

4
  Start with a pilot project. A new management tool or approach will always be on trial
until it has proved itself and has achieved acceptance in the developing country. It is
therefore advisable to start with a single pilot project, which must be carefully chosen.
The pilot project should be used to demonstrate that project management works, and to
build trust in the project management approach and in its managers.
 Choose a safe first project. The first project should be one that is not vulnerable to
failure and is quite certain to be a success. It should be low-risk, non-controversial, and
one for which governmental and public support can be readily achieved.

 Keep it simple. Technologically complex projects should be avoided, particularly for the
first project; and projects should be picked which use only technology reasonably
consistent with the resources, knowledge, and skill levels of the country and its people.

 Choose a compatible organizational form. The best management choice would be a

completely local model. Important local cultural elements, such as work roles,
behavioural expectations, management practices, reporting relationships, work rewards,
etc. must be built into the project management organization.

 Seek total focal commitment. Total local commitment must be obtained to make project
management work in a developing country. Commitment can only be obtained by total
involvement of government officials, the bureaucracy, and the people. People will not
become involved unless there is something in it for them personally.

 Avoid drastic change. Project management should be implemented so as to avoid drastic

organizational disruption and any significant threats of change. Disruptive changes, such
as loss of jobs, changes in work conditions, power struggles, loss of face, or management
embarrassment, which might result from project failure, must be avoided. If either the
bureaucracy or the workers view the project as either a real or potential threat to their
security, their resistance can destroy a project.

 Use projects as a vehicle for change. Recognizing that the successful implementation of
developmental projects in developing countries is often hindered by local management
incapacity and inefficiency, projects can be used as an effective vehicle for change. The
environment of a successful project effort can constitute a wonderful training ground for
future managers and skilled workers, and be an effective means of bringing about
administrative reform.

D. Some General Management Challenges to Projects

 Time, cost and quality: The biggest challenge faced by all countries that wish to use
project management is ensuring that their projects deliver the agreed objectives within
time, cost and to the agreed quality.

 Resources: Projects rely on the effective employment of finite resources, whether these
are people, equipment or facilities – in other words, anything required to complete a

5
 project activity – and these will cost money. Most developing countries face the
challenge of ensuring that they make the most of these finite resources.

 People: People are probably the most important resource on any project and the
challenge that a country has to meet when using project management relies on the
efficient utilisation of these people. It is vital that the right people are used, that they
receive the correct training and that they are clear on the objectives of the project.

 Technical: Due to the unique nature of projects there will frequently be the need to
employ new technology. The challenge will be dealing with this new technology – do we
have the expertise who can use it, will they need training, does the technology we require
even exist or will we have to make it ourselves?

 Legal: An organisation will have to deal with law and legislation when embarking on a
project. Project work frequently involves working abroad and always includes the use of
contracts. The organisation must therefore determine which legal system they will
employ for their project, if they are working abroad. There will also be industry-specific
legislation that must be followed.

Project Management Problems

Some of the problems of project management include the following:

1. Ineffective project planning and preparation;

2. Faulty appraisal and selection processes;
3. Defective project design;
4. Problems in start-up and activation;
5. Inadequate project execution, operation and supervision; and
6. Inadequate or ineffective external coordination of project activities.

The paucity of well-conceived projects is a primary reason for the poor record of plan
implementation in many developing countries. The inability to identify, formulate, prepare and
execute projects continue to be a major obstacle to increasing the flow of capital into the poorest
societies.