Project Management

Prof. dr. ir. Guido Van Huylenbroeck

Prof. dr. Xavier Gellynck
 Practical organisation
• Thursday: 10.00 – 12.30 h
• E2.009
• theory

• Friday: 13.00 – 15.30 h

• Room A0.041
• exercises

• Detailed programme available on Minerva

 Table of content
Dutch course notes English course notes

1. Projectconcept en projectcyclus 1. the project concept

2.Doelgerichte interventieplanning 2. project planning methodology

3. Netwerkplanning met PERT 3. Managing the time

4. Bepalen van baten en kosten van projecten 4. project appraisal through cost-benefit
analysis
5. Financiële analyse van projecten

6. Sociaal economische analyse 5. the application of cost-benefit

analysis methodology

7. Analyse van de overige effecten van projecten Example multi-criteria analysis

8. Monitoren en evaluatie van projecten 8. Monitoring and evaluation of projects

Objective-oriented
intervention planning
Project cycle PERT
Financial and economical
Logical framework
analysis

Identification preparation

evaluation appraisal

Implementation
(monitoring)
Introduction
 Definition
• A project is a coherent bundle of activities
aiming at changing a present situation to an
improved future situation
• This defintion includes:
– Context: broader environment of projects (mission for
firms, development situation for regions)
– Problem situation: what must be changed
– Objectives or vision on future situation
– Choices about when and how to intervene
The project concept
 Development projects
• Development projects aim at generating
CAPACITY so that the initial situation can be
improved without comprimising the future
availability of resources (e.g. environmental
constraints)
• A project is therefore a coordinated series of
activities to change resource combinations and
levels as to contribute to development objectives
of an organisation (a firm, region or country)
• A project therefore is embedded in a
programme: the total effort made to achieve
certain development objectives
 Situating projects

M I s s io n o f o r g a n is a t io n

P ro g ra m m e 1 P ro g ra m m e 2 P ro g ra m m e 3

P r o je c t 1 P r o je c t 2

O p e r a t io n a l a c t iv ity O p e r a t io n a l A c t iv ity
 Rural development projects
• Rural development projects are specific projects
that are intended to improve the situation of the
rural population
• Projects must be the drivers enhancing change
• Projects build up capacity so that local actors
can generate new or improved activities
(difference between project and operational
activity)
• Projects create direct effects with the hope that
these create sufficient multiplier effects (see
later)
 Project importance
• Failure of rural development is often bad
management of projects
• Aspects:
– projects need to fit in development planning
– projects have direct and indirect impacts
(multiplier and linkages)
– capital intensivity versus labour availability
– equity considerations (pareto versus kaldor-
Hicks)
 Aspects of project
• A project contains a number of activities, in order
to realise a specific goal in a certain period of
time
• Aspects of a project:
– Location
– Duration – investments
– Tangible costs and products
– Own budget (financing of activities)
– Own administrative structure
– Justification to management and financing authorities
 Projects versus operations
PROJECTS OPERATIONS
• Unique • Repetitive
• Finite • Eternal
• Revolutionary change • Evolutionary change
• Disequilibrium • Equilibrium
• Unbalanced objectives • Balanced objectives
• Transient resources • Stable resources

• Flexibility • Stability
• Effectiveness • Efficiency
• Goals • Roles
• Risk and uncertainty • experience
 Project management
Evolved in order to
– Plan
– Coordinate
– Control
complex and diverse activities of modern
industrial, commercial and development
projects
 Types of projects
• Experimental projects
• Pilote projects
• Demonstration projects
• Production projects
 Kinds of projects

Classification on the basis of:

– origin of the financial resources
– nature of financing
– destination
– application of the resources
 Aspects of projects
• Technical aspects
• Organisational aspects
• Social aspects
• Commercial aspects
• Financial aspects
• Economical aspects
• Political aspects
• Environmental aspects
 Project balance
• Performance and quality
• Budget
• Time to completion
quality
Balancing
the objectives:
?

cost time
 Project cycle

Identification preparation

evaluation appraisal

Implementation
(monitoring)
 Project cycle
• Identification of projects
– what are the needs (objective oriented planning)
• Preparation: feasibility study
• Appraisal: what are the expected effects and
impact
• Implementation (investment, development,
monitoring and completion)
• Evaluation and impact assessment
 Steps in project management
1. Identification of intervention strategy
(objective oriented planning)
2. Identification of intervention logic (logical
framework analysis)
3. Time planning of project (PERT)
4. Cost-benefit evaluation of projects
5. Implementation and evaluation
 Project life cycle

Level of
effort
Project life cycle, engineering project
Planning Manufacture Site construction handover

Level of
effort
 Plan

Control Lead Organise

Implement
PRE-PLANNING

Desk studies
Field survey
‘information’ PLANNING

Identification of opportunities
Project proposals Information
Support studies
Feasibility studies
Project design

MANAGEMENT
Pre-project:
Environment
Plan of work
Procurement

Project management
MONITORING
EVALUATION
Post-project:
Termination / handover
 Preliminary project idea

Preliminary economic, environmental, financial

and social screening of the project idea
(very quick to identify major problems-

1 Possible end of activity

Selection of institutions to carry out further

investigations and to initiate project

Preliminary identification, design, evaluation

and screening of project alternatives

2 Possible end of activity

Intermediate level studies:

Progressive elimination of alternatives
 Selection of final set of alternatives

3 Possible feedback to
Project design
Selection of final alternative

Final design and evaluation

Programming execution of project

Construction and other steps to implement the project

Promotion and evolution of project, including operation and maintenance

5 Possible feedback

Ex-post (formative) evaluation, including early stages of project

5 Possible feedback

Summative, overall ex post evaluation

5 Possible feedback
Feedback to planning procedures