Introduction 2007
Introduction 2007
4. Bepalen van baten en kosten van projecten 4. project appraisal through cost-benefit
analysis
5. Financiële analyse van projecten
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
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
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
3 Possible feedback to
Project design
Selection of final alternative