Development planning and project analysis ll

1. Chapter one
What is project concept and project cycle?
Project concept refers to the initial idea or vision for a project,
which includes the overall goal, objectives, and scope. It is the
first stage of project planning and involves identifying the
need for the project and determining whether it is feasible
and worthwhile to pursue.

Project cycle, on the other hand, refers to the stages that a

project goes through from its inception to its completion. The
project cycle typically includes five stages: initiation, planning,
execution, monitoring and control, and closure. Each stage
involves different activities, tasks, and deliverables, and
requires different skills and resources.

In summary, project concept is the initial idea or vision for a

project, while project cycle refers to the stages that a project
goes through from its inception to its completion.
What are the project cycles?
The project cycle typically includes five stages:
1. Initiation: This is the stage where the project is identified
and its feasibility is assessed. The project concept is developed
and a project charter is created.
2. Planning: In this stage, the project plan is developed, which
includes defining the scope, objectives, timelines, and budget.
The project team is also assembled during this stage.
3. Execution: This is the stage where the project plan is put
into action. Tasks are assigned to team members, and the
project work is carried out.
4. Monitoring and Control: In this stage, progress is monitored
against the project plan, and corrective actions are taken if
necessary. This stage involves tracking the project's progress,
identifying any issues or risks that arise, and taking steps to
mitigate them.
5. Closure: This is the final stage of the project cycle, where
the project is completed and handed over to the stakeholders.
A post-project review is conducted to assess the success of the
project and identify areas for improvement in future projects.

What is the difference between project concept and project

analysis?
Project concept refers to the initial idea or vision for a project,
which includes the overall goal, objectives, and scope. It is the
first stage of project planning and involves identifying the
need for the project and determining whether it is feasible
and worthwhile to pursue.

Project analysis, on the other hand, is a more detailed

examination of the project concept. It involves conducting
research, gathering data, and analyzing various factors such as
resources, costs, risks, and benefits. The purpose of project
analysis is to determine the best approach to achieve the
project goals, identify potential problems or obstacles, and
develop a plan for implementation.

In summary, project concept is the initial idea or vision for a

project, while project analysis is a more detailed examination
of the project concept to determine feasibility and develop an
implementation plan.

What is the difference between project analysis and project

management?
Project analysis is the process of evaluating a project's
feasibility, goals, and objectives. It involves identifying the
project's scope, defining the requirements, and assessing the
risks and benefits. Project analysis is typically conducted
before the project begins to ensure that it is viable and
achievable.

Project management, on the other hand, is the process of

planning, executing, and controlling a project from start to
finish. It involves coordinating resources, managing timelines,
and ensuring that the project meets its goals and objectives.
Project management is an ongoing process that requires
monitoring and adjusting as needed to keep the project on
track.

In summary, project analysis is focused on determining

whether a project is worth pursuing, while project
management is focused on ensuring that the project is
completed successfully.

2. Chapter two
Conduct financial analysis and differentiate between different
project apprisal?
Financial analysis is a critical component of project appraisal.
It involves evaluating the financial viability of a project by
examining its costs, benefits, and risks. There are several
methods of project appraisal, including:

1. Net Present Value (NPV): This method calculates the

present value of all expected cash inflows and outflows of a
project. If the NPV is positive, the project is considered
financially viable.

2. Internal Rate of Return (IRR): This method calculates the

rate at which the project's cash inflows equal its cash
outflows. If the IRR is greater than the required rate of return,
the project is considered financially viable.

3. Payback Period: This method calculates the time it takes for

the project's cash inflows to equal its cash outflows. The
shorter the payback period, the more financially viable the
project.
4. Benefit-Cost Ratio (BCR): This method compares the
present value of the project's benefits to its costs. If the BCR is
greater than 1, the project is considered financially viable.

Different methods of project appraisal have their strengths

and weaknesses, and the choice of method depends on the
nature of the project, its objectives, and the availability of
data. For example, NPV is preferred when comparing projects
with different lifespans, while payback period is useful for
short-term projects. BCR is useful when comparing projects
with different scales and sizes.

3. Chapter three
Conduct economic analysis of a project?
To conduct an economic analysis of a project, the following
steps can be taken:

1. Identify the project's objectives: The first step is to clearly

define the project's objectives. This will help in determining
the relevant economic factors to be considered in the analysis.

2. Determine the project's costs: The next step is to identify

and quantify all the costs associated with the project. This
includes direct costs such as materials, labor, and equipment,
as well as indirect costs such as overheads and administrative
expenses.

3. Determine the project's benefits: The benefits of the project

should also be identified and quantified. These could be in the
form of increased revenue, cost savings, or other economic
benefits.

4. Calculate the project's net present value (NPV): Using the

NPV method, the present value of all expected cash inflows
and outflows of the project should be calculated. If the NPV is
positive, the project is considered financially viable.
5. Calculate the project's internal rate of return (IRR): The IRR
should also be calculated to determine whether the project's
cash inflows equal its cash outflows at a rate greater than the
required rate of return.

6. Calculate the project's payback period: The payback period

should also be calculated to determine how long it will take
for the project's cash inflows to equal its cash outflows.

7. Calculate the project's benefit-cost ratio (BCR): The BCR

should also be calculated to compare the present value of the
project's benefits to its costs.

8. Evaluate risks and uncertainties: The analysis should also

consider any risks and uncertainties associated with the
project and their potential impact on its financial viability.

By conducting an economic analysis of a project using these

methods, decision-makers can make informed decisions about
whether to invest in a particular project or not.
4. Chapter four
Understand and apply project implementation and evaluation
tools and techniques?
To implement and evaluate a project, the following tools and
techniques can be used:
1. Project planning tools: These include Gantt charts, critical
path analysis, and project management software to help plan
and schedule tasks and resources.

2. Performance measurement tools: These include key

performance indicators (KPIs) and balanced scorecards to
monitor progress and performance against objectives.

3. Risk management tools: These include risk registers, risk

assessments, and contingency planning to identify and
mitigate potential risks and uncertainties.

4. Stakeholder engagement tools: These include stakeholder

analysis, communication plans, and feedback mechanisms to
engage stakeholders and ensure their needs are met.

5. Evaluation tools: These include impact assessments, cost-

benefit analysis, and surveys to evaluate the effectiveness and
efficiency of the project and identify areas for improvement.
By using these tools and techniques throughout the project
implementation and evaluation process, project managers can
ensure that the project is delivered on time, within budget,
and meets the objectives of all stakeholders.

5. Chapter five
Evaluate impact of a project?
To evaluate the impact of a project, the following steps can be
taken:

1. Define the objectives: Clearly define the objectives of the

project and what impact is expected to be achieved.
2. Identify indicators: Identify key performance indicators
(KPIs) that will help measure the impact of the project. These
could include quantitative measures such as increased
revenue or reduced costs, or qualitative measures such as
improved customer satisfaction or employee engagement.

3. Collect data: Collect data on the KPIs before and after the
project implementation. This could involve surveys,
interviews, financial reports, or other relevant data sources.

4. Analyze data: Analyze the data collected to determine

whether the project had the intended impact. This could
involve statistical analysis, trend analysis, or other methods of
data analysis.

5. Communicate results: Communicate the results of the

impact evaluation to stakeholders, including project sponsors,
funders, and beneficiaries. This could involve creating reports,
presentations, or other communication materials.
6. Take action: Use the results of the impact evaluation to
identify areas for improvement and take action to address any
issues that were identified.

By following these steps, project managers can effectively

evaluate the impact of their projects and make informed
decisions about future projects and initiatives.

What is impact evaluation ? example of impact evaluation?

Impact evaluation is the process of assessing the changes that
occurred as a result of a project or program. It involves
measuring the outcomes and impacts of the project on the
target population, community, or environment. Impact
evaluation helps to determine whether the project achieved
its intended goals and objectives and to identify areas for
improvement.
An example of impact evaluation would be assessing the
impact of a health education program on reducing the
incidence of a particular disease in a community. The
evaluation would involve measuring changes in knowledge,
attitudes, and behaviors related to the disease among the
program participants. It would also involve measuring the
incidence of the disease before and after the program to
determine if there was a decrease in the number of cases. The
impact evaluation would help to determine whether the
program was effective in achieving its goal of reducing the
incidence of the disease.

Question
Which of the following best defines a project?

A temporary and unique endeavor with a specific goal

A long-term and routine task

A one-time activity with no specific end goal

A process that does not require planning

ANSWER: A

What are the phases of a typical project life cycle?

Initiation, design, execution, and closeout

 Planning, execution, review, and closeout

Analysis, design, implementation, and monitoring

Conceptualization, experimentation, implementation, and review

ANSWER: A

What is the importance of having a project scope statement?

It outlines the resources needed for the project

It defines the project objectives and deliverables

It identifies the stakeholders for the project

It schedules the project activities and tasks

ANSWER: B

What is the primary purpose of conducting financial analysis for project

appraisal?

To identify potential project risks

To evaluate the feasibility of the project

To identify potential project stakeholders

To determine the project team's availability

ANSWER: C

What are the three primary financial statements used in financial

analysis?

Balance sheet, income statement, and cash flow statement

Balance sheet, profit and loss statement, and statement of retained

earnings
Income statement, cash flow statement, and statement of retained
earnings

Balance sheet, income statement, and statement of comprehensive

income

ANSWER: A

What is the difference between NPV and IRR?

NPV measures profitability, while IRR measures the rate of return

IRR measures profitability, while NPV measures the rate of return

NPV and IRR measure profitability in the same way

NPV and IRR measure the rate of return in the same way

ANSWER: B

Which of the following is an example of a qualitative economic analysis in

a project?

Net present value (NPV)

Internal rate of return (IRR)

Cost-benefit analysis

Market analysis

ANSWER: D

What is the first step in conducting a cost-benefit analysis for a project?

Calculate the present value of future costs and benefits

Identify all the costs and benefits associated with the project

Determine the discount rate to be used

Estimate the time horizon for the analysis

ANSWER: B

Which of the following is an example of a quantitative economic analysis

in a project?

Break-even analysis

SWOT analysis

Stakeholder analysis

Feasibility analysis

ANSWER: A

Which of the following is a tool used in project management for

scheduling and tracking tasks?

Gantt Chart

Pareto Chart

Fishbone Diagram

Scatter Plot

ANSWER: A

What is the purpose of a project charter?

To define the scope, objectives, and stakeholders of the project

To track progress and report on project status

To identify risk factors and mitigation strategies

To analyze project performance metrics and evaluate outcomes

ANSWER: A

What is the purpose of a SWOT analysis in project planning?

 To identify strengths, weaknesses, opportunities, and threats related to
the project

To establish a baseline for project performance metrics

To define the critical path for completing project tasks

To assess project risks and develop contingency plans.

ANSWER: A

What is the definition of impact evaluation in project management?

Assessing the progress of a project

Evaluating the expected outcomes of a project

Analyzing the effects of a project on its stakeholders

Measuring the financial returns of a project

ANSWER: C

Which of the following is not a method for impact evaluation in project

management?

Cost-benefit analysis

Surveys and questionnaires

Randomized control trials

Risk analysis

ANSWER: D