COURSE CONTENTS

• Chapter 1 :Introduction to Project and

Project management
• Chapter 2: Project Management Framework-
Project Life Cycle and Project Management
process groups
• Chapter 3 :Project Identification and
Preparation
• Chapter 4:Project Planning
• Chapter 5: Project Implementation
(execution)
• Chapter 6: Project Monitoring and Evaluation
• Chapter 7 :Project Closing
• Chapter 8 :Projcet Management Knowledge
areas
 Why we study Project management- PM?
 Project management gives you the knowledge and
skills to identify , plan, implement, M& E and
closining of a projects, meaning you have the
capacity to improve successful implementation of
a project

• Project management makes money

• It enhances business performance
• It is a time and cost saver. In doing so, it optimizes
resources in an organization
• It serves as a personal development tool
• It serves as a leadership tool
• It is important for development of resources
• It incorporates innovations
• It helps integrate varied interest groups
• It brings stability in society
 Meaning, Definition and Feature of Project
• What exactly is a project? You hear the word used
all the time at work, as well as at home.
• A project is generally called upon to provide a
solution to a problem or to take advantage of an
opportunity. Eg Covid-19
• An intervention that consists of a set of planned,
interrelated activities designed to achieve defined
objectives within a given budget and a specified
period of time.
• A series of activities aimed at bringing about
clearly specified objectives within a defined
time-period and with a defined budget.
• Projects can be viewed as having four essential
elements: a specified timeframe, an orchestrated
approach to co-dependent events, a desired
outcome, and unique characteristics.
• A convenient starting point is
consideration of the project definition
process.
• There are six basic WH questions that
need to be addressed:
1. 1. Who: who are the parties ultimately
involved? (parties);
2. 2. Why : what do the parties want to
achieve? (motives);
3. 3. What: what is it the parties are
interested in? (design);
4. Which way : how is it to be done?
(activities);
5. Wherewithal : what resources are
required? (resources);
 Defining a Project?...
• Temporary. Projects always have a start and a
finish
• A project is an exception/unique. Unlike routines,
projects involve investigation, compilation,
arrangement, and reporting of findings in some way
that provides value. The answers to the basic project
questions cannot be found in the routines of your
department, which is what makes it exceptional. The
processes involved with the project fall outside your
department’s ‘‘normal’’ range of activities and
functions.
• Unique Activities- The activities in a project must be
unique. A project has never happened before, and it
will never happen again under the same conditions.
Something is always different each time the
activities of a project are repeated. No two projects
are the same. Projects differ from each other with
regard to time and space, deliverables or outputs as
 Defining a Project?...
Progressively Elaborated
• Projects are developed in steps.
• This means that the project scope will be
broadly described early in the project and
becomes more explicit and detailed as the
project team develops better and more
complete understanding of the objectives
and deliverables.
• We learn more and more about the project
as it goes on.
• When we start, we’ve goals and a plan, but
there’s always new information to deal
with as our project goes on and we’ll
always have to make decisions to keep it
on track.
 Defining a Project?...
• Project goals and deadlines are specific.
The desired result is identified. A project is
well defined only when a specific result is
known.
Connected Activities/Interdependencies.
• Connectedness implies that there is a logical or
technical relationship between pairs of
activities.
• There is an order to the sequence in which the
activities that make up the project must be
completed.
• They are considered connected because the
output from one activity could be an input to
the other one.
• A project consists of a number of interrelated
 Defining a Project?...
• Within Budget
– Projects also have resource limits, such as a limited amount of people,
money, or machines that are dedicated to the project.
– While these resources can be adjusted up or down by management, they
are considered fixed resources to the project manager.
• According to Specification
– The customer, or the recipient of the project deliverables’, expects a
certain level of functionality and quality from the project.
– These expectations can be self-imposed, such as the
specification of the project completion date, or customer-
specified, such as producing the sales report on a weekly
basis.
• High level of uncertainty & risk
– As a result of its uniqueness, dependency on other
agencies and its relatively long-term nature; a project is
faced with a lot of uncertainty and risk
• Teamwork/multi-skill
– Projects require a team of people with different skills to
get the job done
 Why a Project?
• These needs might have to do with:
• Reducing costs
• Increasing revenues
• Eliminating waste,
• Increasing productivity and efficiency
• Taking advantage of market opportunities
• Filling social needs; improving service to
customers or clients
• Responding to the activities of competitors
• Responding to external changes (e.g
development of new technology)
• Responding to government initiatives or new
laws or political consideration
• Resource availability –opportunity to make
profitable use of available resource, and
• Natural calamity –planting against the adverse
effects of natural events as drought or floods.
 Examples of Projects
• Constructing a road, building or facility
• The expansion of primary education in a
given region/locality or reforming school
curriculum,
• Organising an event, like a wedding or a
party
• Case management, like social work or legal
issue
• Working on solving organisational problems
like inefficiency
• Renovating an old house
• Restructuring a system
• Developing a new software application
• Creating a new radio/ media advertisement
• Conducting marketing research, etc.
• Running a campaigning for political office
• Building a water system for a community
 Difference Between Projects
• One project could be different from
another in the following respects:
1. Size and number of separate activities
2. Number of various skills, departments and
people involved
3. Amount of time involved
4. Number of different activities involved
5. Amount of money involved
6. Impact on the organisation and customers
7. Control procedures
8. Communication procedures
 1.8 Project
•
Parameters/Constraints
In project management, these six factors –
constitute the most important parameters. It is vital,
right from the start of your project planning, to try
to define the way in which each of these will affect
your project.
• Six constraints operate on every project:
a) Scope
b) Quality
c) Cost/ budget
d) Time
e) Resources
f) Risk
• These constraints form an interdependent set; a
change in one can require a change in another
constraint in order to restore the equilibrium of the
project.
• In this context, the set of five parameters form a
system that must remain in balance for the project
 Project Parameters
A. Scope
• Scope is a statement that defines the boundaries of the
project, the work to be included and the features.
• It tells not only what will be done but also what will
not be done.
• In the information systems industry, scope is often referred
to as a functional specification.
• In the engineering profession, it is generally called a
statement of work. It is critical that scope be correct.
• Beginning a project on the right foot is important, and so
is staying on the right foot.
• It is no secret that scope can change. You do not know how
or when, but it will change. Detecting that change and
deciding how to accommodate it in the project plan are
major challenges for the project manager.
 Project Parameters
B. Quality
• Two types of quality are part of every project:
• The first is product quality. This refers to the quality of
the deliverable from the project. The traditional tools of
quality control are used to ensure product quality.
• The second type of quality is process quality, which is
the quality of the project management process itself. The
focus is on how well the project management process
works and how can it be improved. Continuous quality
improvement and process quality management are the
tools used to measure process quality.
• A sound quality management program with processes
in place that monitor the work in a project is a good
investment.
• Quality management is one area that should not be
compromised. The payoff is a higher probability of
successfully completing the project and satisfying the
customer.
 Project Parameters
C. Cost
• The monetary cost of doing the project is another variable that defines the
project. It is best thought of as the budget that has been established for the
project.
• This is particularly important for projects that create deliverables that are
sold either commercially or to an external customer.
• Cost is a major consideration throughout the project management life cycle.
The first consideration occurs at an early and informal stage in the life of a
project.
• The customer can simply offer a figure about equal to what he or she had in
mind for the project.
• Depending on how much thought the customer put into it, the number
could be fairly close to or wide of the actual cost for the project.
 Project Parameters
D. Time
• The customer specifies a time frame or deadline date within which the project
must be completed. To a certain extent, cost and time are inversely related to one
another. The time a project takes to be completed can be reduced, but costs
increase as a result. Time is an interesting resource. It can’t be inventoried. It is
consumed whether you use it or not.
• The objective for the project manager is to use the future time allotted to the
project in the most effective and productive ways possible.
• Future time (time that has not yet occurred) can be a resource to be traded within
a project or across projects. Once a project has begun, the prime resource
available to the project manager to keep the project on schedule or get it back on
schedule is time. A good project manager realizes this and protects the future
time resource jealously.
E. Resources
• Resources are assets, such as people, equipment, physical facilities, or inventory, that
have limited availabilities, can be scheduled, or can be leased from an outside party.
Some are fixed; others are variable only in the long term.
• In any case, they are central to the scheduling of project activities and the orderly
completion of the project.
 Project Parameters
F. Risk
• Project managers manage projects in uncertain
situations.
• Project risk: the likelihood of the occurrence of
an uncertain event, usually a negative one that
may adversely affect the successful completion of
a project. Unlike uncertainties, likelihood of
occurrence can be attached to risks
• Project risk indicates that projects travel through
rough roads.
• This makes the field of project mgt very distinct
and requiring competitive knowledge, skills, tools
and techniques.
• In many cases, project management may spend
much time in an attempt to adapt to unpredicted
change.
• So, we should plan for things that could happen
 The 6 Project Constraints!

Time: Your project needs to be done on schedule.

Cost: Your project will always have to stay within a budget.
Scope: You need to manage the scope of work you do for the project
Resources: You have to have the people and materials to get the work done.
Quality: If your product doesn’t do what it’s supposed to do, your project will fail.
Risk: Unexpected obstacles can wreck your project
 Chapter Two
Project Management Framework-
Project Life Cycle and Project
Management Process Groups
•
What is Project Management?
It’s a process of managing resources in such a way that a project is completed
within defined scope, quality, time, and cost constraints.
• Applying both the science and art to planning, organising, implementing, leading
and controlling the work of a project to meet the goals and objectives of an
organisation.
• Project management is the application of knowledge, skills, tools, and techniques
to project activities to meet the project requirements. Project management is
accomplished through the appropriate application and integration of the 47
logically grouped project management processes, which are categorized into five
Process Groups.
• ”Process” are set of interrelated actions and activities performed to achieve a
specified set of products, results, or services.
• These five Process Groups are: Initiating, Planning, Executing, Monitoring and
Controlling, and Closing.
• 10 Knowledge Areas (scope, quality, time , cost, risk, procurement, communication,
resources, stakeholders & project Integration)
• Project management can be defined as the application of processes, methodologies,
insight, knowledge, skills and techniques that will result in the goals of a project
being reached
 Project Management
• Managing a project typically includes, but is not limited to:
 Identifying requirements;
 Addressing the various needs, concerns, and expectations
of the stakeholders in planning and executing the project;
 Setting up, maintaining, and carrying out communications
among stakeholders that are active, effective, and
collaborative in nature;
 Managing stakeholders towards meeting project
requirements and creating project deliverables;
 Balancing the competing project constraints, which
include:
 Scope
 Quality,
 Schedule,
 Budget,
 Resources, and

Projects are typically not part of the day-to-day
business operations, and this is what separates
project management from everyday business
management.
Project management is an essential part of
successful projcet implemenation .
So, what is good project management?
Professional project managers will tell you that
successful projects require planning, discipline, and
good, regular communications along actors/ players/
stakeholders
Here are a few principles to include in your project:
Principle 1: Establish a vision & mission, define
the project
Principle 2: Set Clear milestones and ultimate
goals.
Principle 3: Require transparent & regular
status measure progress,
 Areas of Expertise Project
Management Involves
• Project management involves knowledge, tools,
techniques and skills that are unique to it,
• It requires understanding and use of knowledge and
skills from at least five areas of expertise.
• These five areas are:
– The project management body of knowledge
– Application area knowledge, standards &
regulations
– Understanding the project environment
– General management knowledge and skills
– Interpersonal skills.
Areas of Expertise a Project
Team Needs

General
Managemen Understandi
t Knowledge ng the
and Skills Project
Environment
Project
Management
Body of
Knowledge
Application
Interperson
Area
al Skills
Knowledge,
standards,
procedures
 1. Understanding the Project
• Environment
Virtually all projects are planned and implemented
in a social, economic, and environmental
context, and have intended and unintended
positive and/or negative impacts.
• A project should consider how it affects people and
how people affect it.
• Therefore, it is very essential to consider projects in
their cultural, social, international, religious,
political, physical environmental and economic
contexts.
• Thus, a project should consider:
– Socio-cultural environment: how it affects
people and how people affect it (an
understanding of the economic, demographic,
educational etc characteristics of people)
– International and political environment:
applicable international, national, regional, and
local laws and customs, and the political
atmosphere
–
 Understanding the Project Environment
• You can’t manage your project in a vacuum
• Think of enterprise environmental factors:
 People (the skills and organizational culture where
you work)
 Market (the way your company is performing)
 Risk tolerance (some companies are highly
tolerant, others are not)
 Databases (where your company stores data)
 Your company’s big picture (programs, portfolios)
 Organizational culture (whether project
management is recognized as a valid role with
accountability and authority (see the three different
organization types, next slide )
 Application Area Knowledge, Standards &Regulations
• These are divisions of projects that possess
common significant components in such
projects.
– These divisions or categories are not
needed or available in all projects.
• Such areas of application are mostly defined
in terms of:
– Functional departments and supporting disciplines (e.g.
legal, production, inventory, marketing,
logistics, and personnel)
– Technical elements (e.g. software
development or engineering, or
construction engineering)
– Management specialisations (e.g.
government contracting, community
development and product development)
 General Management Knowledge & Skills
• Project management also embraces the basic functions of general
management: planning, organising, staffing, executing and controlling.
• Planning:
 involves identifying alternative courses of action/activities and
selecting the most efficient course of action to achieve the
objective(s);
 it includes translating long-term organizational goals into short term
objectives and targets;
 it also involves identifying the constraints and resource needs of the
specific activities and risks involved (including intended ways to
minimize them) in the achievement of the project objective(s) i.e.
Budgeting.
• Organizing: involves mobilizing the resources necessary for executing the
planned activities:
– people
– finance
– inputs/materials
– other resources: space, equipment, facilities
 General Management Knowledge & Skills
• Staffing: involves issues of job design, staff recruitment, motivation.
– Job design: may be caused by introduction of new techno, implementation of a new policy,
moving to a new building, provision of new product or service. It may involve
– Job rotation (allowing people to rotate between jobs a regular intervals)
– Job enlargement: involves amalgamating several tasks into a
single job
• Executing:
– involves the actual implementation of the project activities to achieve the set targets and
objectives
• Controlling:
– involves checking project outcomes against initially set objectives, identifying gaps &
challenges, and taking corrective measures in time
– reactive: analysing and taking measures after the problem occurred.
Older style
– proactive: on-going follow-up of processes and outcomes; participatory
when it involves stakeholders at various levels
• Supporting disciplines are also included:
– Financial management and accounting
– Purchasing and procurement
– Sales and marketing
– Contracts and commercial law
– Manufacturing and distribution
– Logistics and supply chain
– Strategic planning, tactical planning, and
operational planning
– Organisational structures, organisational behaviour,
personnel administration, compensation, benefits,
and career paths
– Health and safety practices
– Information technology
 4. Interpersonal Skills

• The following interpersonal skills are essential in project management:

– Effective communication skills: two way communication; recognizing
one’s strengths and weaknesses
– Leadership: being influential on things that matter; style (autocratic,
democratic; laissez-faire) factors behind appropriate style (the leader,
the led, the task, the context); functions; participation (consultation,
consent, consensus); delegation
– Motivation: energizing people to achieve high levels of performance
and to overcome barriers to change
– Negotiation and conflict management: conferring with others to come
to terms with them or to reach an agreement.
– Problem solving: problem definition, alternative identification and
analysis, and decision-making.
5. Project Management Knowledge
Areas
• 5 Process Groups, 10 Knowledge
Areas, 47 Processes
1. Project Integration Management:
includes the processes and activities
needed to identify, define, combine, unify,
and coordinate the various processes and
project management activities within the
Project Management Process Groups
2.Project Scope Management: includes
the processes required to ensure that the
project includes all the work required, and
only the work required, to complete the
 Project Management Knowledge
Areas
3. Project Time/schedule Management: includes
the processes required to manage the timely
completion of the project. It is about tracking our
schedule
4. Project Cost Management: includes the
processes involved in planning, estimating,
budgeting, financing, funding, managing, and
controlling costs so that the project can be
completed within the approved budget
5. Project Quality Management: includes the
processes and activities of the performing
organization that determine quality policies,
objectives, and responsibilities so that the project
will satisfy the needs for which it was undertake.
 Project Management Knowledge
Areas…
6. Project Human Resource Management:
includes the processes that organize,
manage, and lead the project team
7. Project Communications Management:
includes the processes that are required to
ensure timely and appropriate planning,
collection, creation, distribution, storage,
retrieval, management, control, monitoring,
and the ultimate disposition of project
information
8. Project Risk Management: includes the
processes of conducting risk management
planning, identification, analysis, response
 Project Management Knowledge Areas…
9. Project Procurement Management:
includes the processes necessary to
purchase or acquire products, services, or
results needed from outside the project
team
10. Project Stakeholder Management:
includes the processes required to identify
all people or organizations impacted by
the project, analyzing stakeholder
expectations and impact on the project,
and developing appropriate management
strategies for effectively engaging
stakeholders in project decisions and
execution.
 World Bank Project Cycle and UNIDO Project Cycle
• The project cycle is the framework used to design, prepare, implement, and
supervise projects. The duration of the project cycle is long by commercial
standards. It is not uncommon for a project to last more than four years; from
the time it is identified until the time it is completed.
• A World Bank project consists of six stages:
• Identification
• Preparation
• Appraisal
• Negotiation/Approval
• Implementation/Support
• Completion/Evaluation
Project Life Cycle – UNIDO Approach i.e United
Nations Industrial Development Organization
• According to UNIDO, project cycle involvesthree major phases.
These are:
1.Pre-investment phase
2.Investment phase (Implementation phase)
3.Operation phase (operation and ex-post evaluation)
• Pre-investment : PhaseThe pre-investment phase includesfour
major activities; namely,projectidentification, pre–selection,
project preparation, and appraisal.
• Project Identification / opportunity study/Opportunity study is
the main instrument used to quantify the
parameters,information and data required to develop a project
idea in to a proposal. Inopportunity study, the firm is required
to analysis the following:
• Availability of resources
• Future demand for goods, increasing population and
increasingpurchasing power.
• Import and export substitutions
Project Management Process Groups
 Chapter Two
PROJECT IDENTIFICATION and PREPARATION

2.1. Project Initiating/ Identification

 40

Defining Project Identification & Screening

• Project identification: refers to the process of recognizing
or identifying of potential projects.
• Project identification consists of finding projects that could
contribute towards achieving specified development
objectives.
• Projects are identified in order to overcome development
constraints, meet unsatisfied needs or demands and fulfil
demand for goods and services.
• To identify the projects/solutions for a particular problem based
on various factors is termed as project identification
• There could be number of possible solutions for a single
problem, so having idea of that solution or identifying those
various solutions is project identification.
• The first and one of the critical steps in the project cycle
management is the identification and selection process.
• Refers to the project concept relevant to priority local needs
and consistent with country’s policy priorities
 41

What are the sources of project idea?(where do you get)?

• Identification could be from several sources: -
Progressive farmers, entrepreneurs, local leaders, bankers,
mass media, extension agencies, national police and plans
Technical experts that has been working for long period of
time
Proposals to extend existing programmes usually NGOs
/donors
Market trends: look at the import export trend
Reports of development banks, they propose business
opportunities exist
Development plan of government: Investment & opportunity
areas
• Sector survey. eg by CSA of Ethiopia
 42

Projects could originate from various sources

Some may be "resource based" and stem from the opportunity to
make profitable use of available resources. eg_______
• Others may be "market-based" arising from identified demand in
home or overseas markets eg__________
• Some may be "need-based" where the purpose is to try to make
available to the target community, in a defined area, minimal
amount of certain basic material requirements& services.eg----
Types of project: Business project vs Development project eg_____
Types of Projects:
(1) Manufacturing Projects: eg----
(2) Construction Projects: eg___
(3) Management Projects: eg___
(4) Research Project eg___
• others..
 43

Project Identification & Screening (cont …

• How is a project identified and undertaken for subsequent implementation?
• Project identification starts with objectives, SWOT analysis and project idea
generation
• Basically the process of project identification is a process of
searching new idea.
• How do we search new idea?
• Obviously we must first find out what are our objectives
• Are our objectives to make money
• Are we trying to help people in disaster without expecting any
monetary returns?
• It requires a great deal of time, energy and logical thinking.
 44

Project Identification & Screening

 Project ideas may originate from various circumstances:-
to solve a problem, to satisfy a need, or to use available
resources
to cater for the needs of the poor in a poverty suffering community
to meet unsatisfied strong needs such as lack of water in a village,
to tap ready market
to use available labor and raw materials
to achieve certain political & social goals such as equal
educational opportunities, and health services.
• Project identification involves several analysis.
• There are Four steps to the Analysis Phase:
1. Stakeholder Analysis
2. Problem Analysis (image of reality)
3. Analysis of Objectives (image of an improved situation in the
future)
4. Analysis of Strategies (comparison of different options to
address a given situation
 45

A) Stakeholder Analysis
Stakeholders: - are people affected by the impact of an activity & people who can
influence the impact of an activity.
any person, group or organization who can be positively or negatively impacted by,
or cause an impact on, the actions or activities proposed
Stakeholders are:
 individuals or groups with a direct, significant and specific stake or interest
in a given territory or set of natural resources and, thus, in a proposed
project.
 People affected by the project
 People who can influence the impact of an activity
 Participation or stakeholder analysis seeks to identify the major interest groups
involved (all those affected by or involved) in the project.
It is a process:
• To identify the people involved in and affected by the project
(stakeholders)
• To determine the opinion of the stakeholders and
• To facilitate their contribution to the project activities at all stages of the
45
project cycle.
 46

Identifying stakeholders

Core issue
 47

Aim of stakeholder analysis : Identify the stakeholders

and assess how they are likely to be impacted by the

project.

Goal of stakeholder analysis : develop cooperation

between the stakeholder and the project team and,
ultimately, assuring successful outcomes for the project.
Identify
Analyze
Engage
Manage
In order to get insight on the RISKS,
we need to invite ‘other stakeholders’ to hear their
 Communities

Interest
groups
Strategic
NGO’s partners

Managers
Providers
Resource Donor
owners Press/
media
Regulators

Local authorities
49
50
 51

Who is most important?

 The group with the money?
 The group with the most influence?
 The ‘trouble-maker’?
 The group with the biggest network?
Four main groups of stakeholders:
 Beneficiaries
 Implementers
 Financing agents
 Decision makers
 52

B. Problem Analysis

• A problem
analysis is an
investigation of
the causes and
consequences of
an incident,
issue or failure.
 53

Problem Analysis
What is the problem to be addressed?
What is the event or series of events that act as a catalyst for action?
Is it a problem or crisis that demands immediate attention?
Is the problem one of national security, economic development, diplomacy?
What interests are at stake for the actor (e.g. state) overall?
State the problem meaningfully: (identify the core problem)
Identify possible contributing factors
Determine the magnitude and extent of the problem
Continually re-define the problem in light of what is possible
Question the accepted thinking about the problem
Question initial formulations of the problem
Say it with data
Clear definitions allow people to communicate with one another
Measures are important for clarification(e.g.,how many people are living in
poverty)
Often have different ways to measure problems
Quantification
 54

Problem Analysis
 55

Problem Analysis
Politics of problem definition
 Based on perspectives
What will change in the future?
• Projections and forecasting
Think about causes
• Must ask why the problem came about
• Answers may help determine how to resolve problem
• Often problems have multiple causes; conflict over which
one to address
 To establish the hierarchy of problems in light of the cause
and effect relationships to find the focal problem
 Identification of priority problem
 Problem analysis
 Problem tree
 Solution tree
 56

Problem Analysis
Steps in problem analysis:
1. Agree on the main problem
2. Identify the causes of the main problem by asking
‘But why?’
3. Identify the effects of the main problem by asking ‘So
what?’ until we can go no further.
4. Copy the complete tree on a paper
Establishing a hierarchy of problems in a problem tree
helps to form a base for the objectives.
 57

C) Objectives Analysis
The objectives analysis describes a future situation that
would exist if all the problems were solved.
The instrument of objectives analysis calls for conversion of
negatively stated problems into positive statements or
objectives

It’s a process to
-determine the objectives parallel to the problems by
stating the problems in positive terms and form an objective
tree (solution tree) in the light of ends and means
relationships.
transforming problems into objectives
 58

From Problem to Objective/solution

Problem Objective

High rate of child deaths To reduce the rate of child deaths

To reduce the rate of

High rate of infectious diseases
İnfectious disease
 59

D) Alternative Analysis/ Strategy Selection

• Identify differing means-ends ladders, as possible alternative options or activity

components
• Eliminate objectives that are obviously not desirable or achievable.
• Eliminate objectives being pursued by other development activities in the area.
• Discuss the implications for affected groups

• Make an assessment of the feasibility of the different alternatives. Select one of the
alternatives as the activity strategy. If agreement cannot be reached, then :
introduce additional criteria alter the most promising option by including or
subtracting elements from the objectives tree.
• After having formulated the desired future situation, the selection of
possible interventions starts.
• To analyse the strategies for implementation, the following steps are taken.
• Identification of the different possible groups of objectives contributing to
a higher objective (clustering)
• Choice of a strategy for the intervention, choosing the scope of the
project.
 60
Selecting Strategies
 61

Project Identification & Screening

Objectives
Internal

SWOT Brainstorming

External
Alternative
Project
Possibilities

Criteria
Screening

Candidate Project
Proposals
 62

Criteria of Choosing a Project Selection Model

 The following criteria are used when choosing a project selection model.

a) Realism: the model should reflect the reality of the firm’s decision situation. The
firm’s limitations on facilities, capital, personnel, technical and market risks,
performance, cost, etc should be taken into account.

b) Capability: the model should be sophisticated enough to deal with the relevant
factors, multiple time periods, internal and external situations, (interest rates, etc).

c) Flexibility: the model should give valid results within the range of conditions that
the firm might experience. It should be easy to modify in response to changes in the
firm’s environment (e.g., new technological advancements, new laws)

d) Ease of use: the model should be reasonably convenient, not take a long time to
execute and be easy to use and understand.

e) Cost: data gathering and modeling costs should be low relative to the cost of the
project
f) Easy computerization: it should be easy and convenient to gather and store the
information in a computer database, and to manipulate data in the model through
the use of a widely available, standard computer package such as Excel.
 63

(I) Top-Down Approach

• Projects are identified based on demands from beyond the community.
• This may include directives from:
• international conventions (such as Kyoto Protocol/climate change)
• international institutions or NGOs that have determined particular priorities and thus projects
• national policy makers identifying projects that pertain to party manifestos and/or national
plans.
Advantages of Top-Down Approach
 It may be a rapid response to disasters like floods, war outbreak because there is limited time
and chance to consult the beneficiaries.
 It can be effective in providing important services like education, health, water, roads
 It can contribute to wider national or international objectives and goals
 and therefore potentially be part of a wider benefit (as in the case of trans-boundary
resources, such as climate, water or others)
Limitations of Top-Down Approach
 Does not help in modifying strongly established ideas & beliefs of people.
 Assumes external individuals know better than the beneficiaries of the service.
 Communities have little say in planning process rendering approach devoid of human resource
development.
 Community develops dependency syndrome on outside assistance and does not exploit their
own potential.
 The development workers (change agents) become stumbling blocks (hesitation) to people-led
development
 tendency to impose their own biases, etc. on people
 64

(ii) Bottom-Up Approach

In this approach community/beneficiaries are encouraged to
identify and plan the projects themselves with or without outsiders.

Advantages of Bottom-Up Approach

Interveners accomplish more with limited resources since people tend to safeguard what they have
provided for themselves.

Develops people’s capacity to identify problems and needs and to seek possible solutions to them.

Provides opportunities of educating people.

Helps people to work as a team and develop a “WE” attitude - makes project progressive and sustainable.

Resources are effectively managed; dependence reduces, there is increased equity, initiative,
accountability, financial and economic discipline.
Limitations of Bottom-Up Approach
Not always effective for projects that require urgency to implement
Time-consuming and requires patience and tolerance.
People sometimes dislike approach because they do not want to take responsibility for action.
The agency using this approach is never in control and cannot guarantee the results it would want.
The priorities of communities may not fit with national or international priorities that seek to have a
broader impact
 65

The Nature of Project Selection Models

There are two types of project selection models. These are:

 Non-numeric and
 Numeric
Both are widely used
Non-numeric models do not use numbers as inputs
But numeric models do
What models should do for us:
 Models do not make decisions; people do-the manager, not the
model, bears responsibility for the decision.
 All models, however sophisticated, are only partial representations
of the reality they are meant to reflect
The non-numeric models are older and simpler.
 66

Types of Project Selection Models

 The subtypes of non-numeric models are the following:
a) The Sacred Cow: the project is suggested by a senior and powerful
official. The project is “sacred” in the sense that it will be maintained
until successfully concluded, or until the boss, personally,
recognizes the idea as a failure and terminates It. considered to be
exempt from criticism or questioning.
b) The Operating Necessity: If a flood is threatening the plant, a
project to build a protective dike does not require much formal
evaluation.
c) The Competitive Necessity: for example, companies may need to
modernize their work to remain competitive.
d) The Product Line Extension: adding new products to the line
making sure that it strengths a weak link.
e) Comparative Benefit Model: selecting a project based on the
benefits it brings.
 67

Project Analysis: Feasibility

Project analysis refers to analyzing a project from
various perspectives so as to determine its viability
and sustainability. There are some important
aspects that we look into in the preparation &
analysis of a project. They should be carried out in
interactive manner
Project analysis consists of :
1. Situation analysis
2. Technical Analysis
3. Operational analysis
4. Market/demand analysis
5. Financial analysis
6. Environmental analysis
7. Economic (Social cost benefit) analysis
8. Risk Analysis
9. Legal aspect etc..
 68

1. Situation Analysis
•Projects are part of a larger context/ situation
•Which environment will the project be situated in?
•Which factors are of importance for achieving the
objectives?
•Analysis of Context made through a study and/or
through
making a “SWOT” and “ PEST” analysis
•Who is working on the issues already?
• What are they doing?
•What is the niche (product, service) of the project?
•Who will implement the project?
•What is the intended duration of the project?
•What is the anticipated level of funding
• PEST=Political, Economic, Social, and Technological forces
 69

2. Technical Feasibility
• Assessment is centered on the technical resources
available to the organization.
• Technical feasibility also involves evaluation of the
hardware and the software requirements of the
proposed system
• A technically viable project should work as designed
in practice.
• E.g1 A project aiming at growing wheat in an arid
area without for irrigation is not technically viable
• The construction of a shallow well for irrigation on a
site underground water is insufficient or too salty
• Establishment of the food processing plant where
there is in adequate water & where roads are not
possible in all the seasons
• Eg 2 Soil, if it is agricultural project, storages,
buildings, marketing channels. It is subjected to
modification up on feedback you get from other
aspects (revision)
 70

3. Financial Feasibility
• The financial aspect (how to maximize benefit,
profit: The issues here are you need to
prepare budget, sources of finance , effects of
price changes
• Project finance should be adequately identified
• Financing terms and conditions should be
acceptable from the borrower and lender sides
• The borrowing interest rate should not be
excessively high
• A reasonable grace and repayment period
 71

4. Socio economic analysis

• How it affects the society:-What are the issues here? Social
implication of a project includes
• -Is the project should benefiting poor people/ communities: its
impact on income distribution, poverty reduction, employment
• -Is the project responsible to national objective of development
plan
• What is the importance of the project in achieving regional
equity
• -Is the project the best in relation to other project options?
assess the project economic worth to the country
Foreign exchange generation
Employment creation
tax generation
Technology transfer
Provision of social services to the community
 72

5. Environmental analysis

Assessment of project impacts to

physical and also non-physical
environmental aspects:
Physical (water, air, land)
Biodiversity
Nuances (noise, odors)
 cultural and historical heritage
• Environmental Impact Assessment
(EIA) is a method of identifying and
analysing the potential impacts of a
project on the environment, with the
view of ensuring environmentally
 73

6. The institutional, organizational and management aspect

• What are the issues here:
• Is institutional structure appropriate for efficient and
effective operation of a project?
• Is institutional structure harmonious with customs and
cultures of a society?
• How are adverse consequences (like conflict) to be talked
• Are duties/responsibilities/authorities clearly defined?
• Is there adequate delegation of authority?
• Is there a monitoring unit?
• Are there the different department have adequate access
to information
 74

7. The market/ demand aspect (market &price)

• The commercial aspect (market and price): What are the

issue here?:
• Is there effective demand?(are prices remunerate/rewarding),
• Is there adequate market for your product(output) ,
• Is there adequate financial arrangement,
• What should be channels of distribution and sale
 Market Analysis: forecasting methods
Forecasting is the use of historic data to determine the direction of future trends.
Forecasting methods are classified into two groups
Qualitative methods – judgmental methods. Forecasts generated subjectively by the forecaster and Educated guesses. Based more on expert opinion and
judgment, qualitative forecasting usually doesn’t rely on history
Quantitative methods – based on mathematical modeling: Forecasts generated through mathematical modeling.
mostly pertains to numbers or figures,
such as sales forecasts, budget forecasts
or numerical projections
 76

8. Operational Feasibility
• This involves undertaking a study to analyze and
determine whether your business needs can be fulfilled by
using the proposed solution.
• It also measures how well the proposed system solves
problems and takes advantage of the opportunities identified
during scope definition.
• Operational feasibility studies also analyze how the project
plan satisfies the requirements identified in the requirements
analysis phase of system development.
• To ensure success, desired operational outcomes must
inform and guide design and development.
• These include such design-dependent parameters such as
reliability, maintainability, supportability, usability,
disposability, sustainability, affordability, and others
 77

9. Sensitivity and Risk Analysis

A technique for investigating the impact of changes in
project variables
Identify key variables which influence project costs and
benefits
Investigate the consequences of likely adverse changes
Identify mitigation actions
 78

10. Scheduling Feasibility

• It is the most important for project success.
• A project will fail if not completed on time. In scheduling
feasibility, we estimate how much time the system will
take to complete, and with our technical skills we need to
estimate the period to complete the project using various
methods of estimation
 79

10. Legal Feasibility

• Legal Feasibility - investigates if the proposed system
conflicts with legal requirements like data protection acts
or social media laws
 80
Contents of Project Identification and Preparation Report
 Status & background of the project- present the origins & historic
background of the project
 Project objectives-describe the major objectives in short paragraph
 Project rationale- explain alternative strategies to attain project objectives &
shows the reasons for the selection of the selected alternative
 Type of product & service- show a list of detailed goods or services to be
delivered by the project
 Project components- show the project items on which project funds will be
spent
 Markets - assess the supply demand gap for the products or services to be
delivered & shows the market outlets and the marketing strategy to sell the
project output.
 Sources of raw materials-, equipment, & labor
 Magnitude of project costs- show preliminary estimate of the cost of
investment & operations including overheads
 Sources of finance-draw a list of potential project donors along with the
reasons of their selection
 Project benefits-present a forecast of project outputs, revenues, foreign
exchange, employment , technologies…
 External benefits of the project-describe secondary costs & benefits expected
 Chapter three
Project Planning
 82

Projcet Planning
What is Project Planning?
 Once you have clearly identified the problem or
opportunity, the next step is to define the basic
objectives of the project, including what is to be
done (specific end results), how (quantity, quality,
or special requirements), when (deadline), how
much it will cost, and who is going to do it.
 Project objectives should be clearly defined in terms
of the desired end results.
 The project objectives should describe what the
project will accomplish.
 Ask yourself, ‘‘If we achieve these stated objectives,
will we consider the project a success?’’
 And defining the objectives of your project is one
major aspect of planning!
 83

What is Project Planning?

Planning- or, more precisely, accurate, complete planning- is an
essential component of a successful project.

It is during this phase that the manager develops the detailed
road map that will keep the project from deteriorating into
disillusionment (lack of expectation)

Every journey needs a map, or at least it does if the goal is to

reach a specific destination, not simply wander(walk).

For a project, the road map is not a literal map but a detailed
description, showing who will do which tasks when.

The difference between the good project manager and the poor
project manager is often described in one word as: planning. Think
of 5=10=47(49)of PMBOK


 84

What is Project Planning?

Like a more traditional map, the plan shows the start and
end points, the sequence of destinations along the way,
and the distance/ time between them.
Creating such a plan requires time and attention to
detail.
It is at this point that many project teams, eager to begin
what they perceive as “real” work, have a tendency to
take shortcuts.
A successful project needs to be properly planned.
No shortcuts should be allowed.
 85

4.2 Reasons for Project Planning

a) To eliminate or reduce uncertainty
b) To obtain a better understanding of the objectives
c) To improve efficiency of the operation
d) To provide a basis for monitoring and controlling work

Besides
e) It boosts project performance and success rates. ...
f) It saves money. ...
g) It improves team communication. ...
h) It ensures the best use of resources. ...
i) It makes it easy to track project goals and outcomes. ...
j) It helps keep all collaborators aligned. ...
k) It improves employee retention
 86

Some of the Core Planning Processes

Scope
Activity Activity
Planning
Scope Definition Sequencing
Definition

Activity
Resource
Duration Schedule
Planning
Estimating Development

Risk
analysis
Cost Cost
Estimating Budgeting

Project Plan
Development
 4.3 The Elements of project plan
Elements of Project Planning
Triangular Constraints
Delivery Schedule
Planning Project Resources
Planning Project Cost Planning
Project Quality Planning
Supporting Plans
Risk Management
Plan Communication
Plan Procurement Plan

Besides, the project plan sets out:የፕሮጀክት ዕቅዱ መነሻ

Objectives of the project
The resources available to the project
The work breakdown
A schedule for the work
 88

What does a good plan consist of

The following are components or attributes of a good plan
Easy to communicate
Explicit/clear
Certain
Controllable
Realistic
Flexible
?
 89

• Other feature of a plan

• It is a dynamic with the environment
• It is future oriented , what is to be achieved
• It suggests how problem solving /overcome
• Therefore, planning is a process while it is a document

Essential ingredients of the planning process

• Setting a time frame : when to do what ? When to achieve what?
• The identification of a sequence of actions and interventions according to
the tie interval..
• It requires a sequential process of thinking according to phases with in a
given period of time . This process includes the following:
1st Identification of the problem to be achieved
2nd Formulation of goals and objectives
3rd Identification of resources, requirements &also the possible constraints
that will face
4th Anticipation of the future situations
5th Identification and evaluation of alternatives course of action for the policy
maker
 90

Major components of the planning phase:

1. Objective: a goal to be achieved by a certain time
2. Program: the strategy to be followed and major actions to be
taken to achieve or exceed objectives
3. Schedule: a plan showing when individual or group activities
or accomplishments will be started and/or completed
4. Budget: planned expenditures required to achieve or exceed
objectives
5. Forecast: a projection of what will happen by a certain time
6.Organization: design of the number and kinds of positions, along
with corresponding duties and responsibilities, required to
achieve or exceed objectives
7. Policy: a general guide for decision-making and individual actions
8. Procedure: a detailed method for carrying out a policy
9.Standard: a level of individual or group performance defined as

adequate or acceptable
 91

4.4 Questions in Project Planning

Typical PROBLEMS with developing objectives include:
Project objectives/goals are not agreeable to all parties.
 Project objectives are too rigid to accommodate changing
priorities.
 Insufficient time exists to define objectives well.
Objectives are not adequately quantified.
Objectives are not documented well enough.
 Efforts of client and project personnel are not coordinated.
 Personnel turnover is high.
 92

Why Do Plans fail

No matter how hard we try, planning is not perfect, and sometimes plans
fail. Typical reasons include:-
● Corporate (business/company) goals are not understood at the lower
organizational levels.
● Plans encompass too much in too little time.
● Financial estimates are poor.
● Plans are based on insufficient data.
● No attempt is being made to systematize the planning process.
 No one knows the ultimate objective.
● No one knows the staffing requirements.
● No one knows the major milestone dates, including written reports.
● Project estimates are best guesses, and are not based on standards or history.
● Not enough time has been given for proper estimating.
● No one is bothered to see if there will be personnel available with the
necessary skills.
● People are not working toward the same specifications.
● People are consistently shuffled in and out of the project with little regard for
schedule.
 93

Chapter Five
5. Project Implementation(Execution ) ትግበራ
 5.1 . Defining Project Implementation(Execution)
Project planning and Implementation: Are they separate issue?
• Success of project implementation often depends on the quality of project
planning before the project begins.
• The preparation of a work plan to implement the project is the first and most
essential part of this stage because all decisions included in the work plan will
affect the project in the future, even if it is possible to change them later.
• Inadequate implementation planning leads to frustration towards the end of the
project & poor project performance
• People should do the right things with the right resources in the right place at the
right time.
• Critical thinking & Outcomes of a Purchase or Procurement(.ie the need to ask:-
• Why does your agency(company/ orgnization/dept) purchase goods and
services? People Time Money Resources

Project Start Project End

 What is Project implementation(PI)/Execution

• Process whereby “project inputs are converted to project outputs”.

• PI focuses on installing or delivering the project's major deliverable in the
organization.
• The PI process involves a series of activities, which need to be planned,
operated and controlled, and which will inevitably involve the utilization
of resources.
• The execution/implementation phase is the longest phase of the project
in which the deliverables are physical built and presented to the customer
for acceptance. Because it takes the liosn share of cost & time of the
project
• Implementation is the most important part of a project cycle because it is
a process that brings the project into reality.
• Sometimes a project document has been very well and carefully prepared
but implementation can be poor and the project as such a failure.
• Implementation starts from the moment the project has been approved
for funding
 Project implementation( Cont.)

PM may be looked at as:

– Putting in action the activities of the project.
– Putting into practice what was proposed in the project
document (i.e. transforming the project proposal into the
actual project.)
– Management of the project or executing the project
intentions
• Implementation usually done by implementing
agency (organization) that prepared the project and
received funding for it.
• Other organizations that participate in the
implementation of the project
– by way of collaboration, say by according good working
relationship, extending technical advice or seconding
their staff to the project are referred to as co-operating
 Project Implementation(Cont)
In the case of project implementation the starting point
is the resources provided to carry out certain
activities. Through activities, outputs are produced,
objectives achieved, and the problem is solved.
Project input project activities project output project
objectives problem solved(impact):
target group
OR
RESOURCES Provided to purchase inputs

ACTIVITIES Carried out by certain inputs

OUTPUTS produced by certain activities

OBJECTIVES Achieved through certain outputs

 Project implementation plan include

During proposal writing stage you state details of the logistics of putting your
proposal into effect i.e Implementation

(i) Activities by phase

(ii) Time it will take;
(iii) Staff needed;
(iv) Special skills outside your organization that may be contracted;
(v) Participation of different stakeholders

Project implementation plan also include:-

A. The project implementation schedule

B. The role of implementer agency
C. Beneficiary participation
D .Organizational structure and staffing
E. Financial management
F. Reporting system
G. Sustainability
 Preparations for Implementation: Action Plan
• Action Plan: The operational presentation in a simple tabulated form
of a project document broken down in annual, biannual, or quarterly
basis depending on the life span of the project.
• Basic Components of Action Plan:-
􀂃 Description of activities:- As much as possible it should be detail.
􀂃 Quantity:- Planned/target activities described in their unit of measurement.
􀂃 Location:- Site/s where the planned/targeted activities are to be executed.
􀂃 Time:- The specific period when the planned activities are implemented.
􀂃 Finance:- The amount of finance required for each and specific activity.
􀂃 Material:- Material requirement of the planned activities.
􀂃 Responsibility:-Which specific body/person/s is/are responsible for each and
specific activity.
􀂃 Others/remark.(Read sample implementation plan from articles shared
 5.2 Project implementation processes or phases(PIP)

• The PIP provides guidance on the main phases in the delivery of a

prescribed project.
• Experience has shown that all of“ the steps ”in the PIP need to be
completed to achieve a successful project, but it is not necessary to
follow the steps consecutively or to go in to the same level of detail
for every project.
(i) Project activation
 This means making arrangements to have the project started. It involves
coordination and allocation of resources to make project operational.
If PIP not carried out during the project design process and embodied in the project
documents, it is carried out at the project activation stage

(II) Project operation

 This is practical management of a project. Here, project inputs are transformed into
outputs to achieve immediate objectives
 5.3 Approaches to project implementation
1. Top-down approach
• In this approach, implementation mainly done by agencies from outside the
community with limited involvement by the beneficiaries.
• These agencies come with their own staff and workers. They may include
Government departments or ministries, international development agencies.
• This approach is good for projects that require quick results like relief projects, as
there is limited time to involve the target group.
• The disadvantage with this approach is that it may result into passivity, hostility
and resistance by the beneficiaries.
2. Bottom-up approach
• Beneficiaries implement the project. Outside agencies may provide the financial
resources and technical assistance.
• The advantages with this approach are that:
• Capacity is built within the community
• The project is readily acceptable
• There is increased use of local resources including labour
• The beneficiaries learn to be self-reliant leading too project sustainability
3. Collaborative participatory approach
• Both top-down and bottom-up approaches to project implementation are applied in
the process
 5.4Responsibility assignment(who is doing what? )
• Roles and Responsibilities
• What are some of the responsibilities of individuals and organizations involved in a
project?
• Who might be involved in the project?
• What tasks would they perform?
• The success of a project rests on the performance of a project manager among others.
• If so, proper selection and assignment of responsibility is a major task in project
implementation.
• But what factors determine the selection of a project manager ?discuss
• Merit, Experience, Educational background etc......???
• Deliverables are out puts, or the end result of either the completion of the project or the
end of a life-cycle phase of the project.
• Deliverables are measurable, tangible outputs
• A project manager may very well be assigned based up on the size, nature, and scope of
the deliverables
• Stakeholders are individuals or organizations that can be favorably or unfavorably
impacted by the project. Hence, project managers must interface with these stakeholders,
and many of the stakeholders can exert their influence or pressure over the direction of the
project.
What are characteristics of a good project manager?
Characteristics of a Good Project Manager
• Should have working knowledge in several fields
• Should be able to understand general managerial problems
• Should have active interest in training and developing subordinates
• Should be able to delegate some of the tasks to subordinates
• Should know the project and understand its objectives
• Should know the systematic process for managing projects
• Should be able to provide answers to the following questions
• What is the project for?
• Why is it required?
• Whom does it serve?
• How is it justified?
• How is it going to be used?
Factors affecting project implementation

 Factors and problems

that lead to failure of
projects
 Financial Problems
 Management problems
 Technical problems
 Political problems
 Research findings on project implementation
• Factors influencing Implementation of development projects:
An Empirical Study of selected African Countries (2012):- The
study results show that project size, clarity of objectives, external
funding, and political conditions are significant determinants of the
rate of implementation.
• Factors Affecting the Successful Implementation of ICT
Projects in Government (2005) :- The key factors are identified,
synthesised and categorised under common broad categories.
• The input variables are categorised into factors for success (drivers
and enablers), and factors for failure (barriers and inhibitors).
• The output variables are categorized into organizational and
technological benefits. Finally, an action for success is proposed.
This action includes suggestions for increasing the impact of factors
for success while reducing the impact of factors for failure and use
of available good practice.
• Critical factors influencing the project success amongst manufacturing
companies in Malaysia (2008):- This study revealed that project success in the
manufacturing context was in two dimensions which this study classified as micro
and macro project success. This study also demonstrated empirically that project
personnel competency and project mission are critical factors influencing the
micro project success and as for macro project success, top management support
and project mission are two main critical factors.
• Determinants of successful project implementation in Nigeria(2012) Factors
of Project Implementation:-
(1) Commitment of contracting firms to approved plans
(2) Skills, training and development undertaking by project staff/workers
(3) Existence of the philosophy of collective responsibility among project
stakeholders. (4 ) Existence of use of scientific Project Management tools and
techniques.
(5) Accuracy of project cost estimates
(6) Supplier/vendor commitment to the project specifications
(7) Client commitment to project financing requirements (8) Environmental factors
(9)
Regulatory requirements, standards & laws (10) Accuracy of designs &
specifications. (11) Economic instability (12) Accuracy of time estimates for project
Other typical implementation problems(Cont.)
• Poor scheduling of projects leading to delays in
implementation.
• Misallocation of funds
• Delay and sometimes lack of counterpart funding
• Lack of accountability and transparency
• Bureaucracy in decision-making.
• Selfishness/nepotism/favoritism by some project managers.
• Weak monitoring systems
• Natural calamities like drought, earthquakes, landslides&
hailstorms.
• Policy changes
• Migration of beneficiaries
• Lack of team work
• Lack of incentives for implementers etc....
 Chapter Six
6. Project Monitoring and Evaluation : Project Cycle
የፕሮጀክት ክትትል እና ግምገማ

Problems &
Potentials
Identification

6 Ex –post Evaluation Formulation 2

Monitoring &
Evaluation
Implementati Appraisal
5 on 3

Approval

4 108
 6.1 Definition of M&E
Monitoring is a continuous process of gathering,
analyzing and interpreting of information on the daily
use of inputs and their conversion into outputs in
order to enable timely adjustment or correction on the
project when necessary. Hence, it is a basic part of
implementation management.

Monitoring is the periodic oversight of the

implementation of an activity which seeks to
establish the extent to which input deliveries, work
schedules, other required actions and targeted outputs
are proceeding according to plan, so that timely
action can be taken to correct deficiencies detected.
Evaluation is a systematical and periodical gathering,
analyzing and interpreting of information on the
operation as well as the effects and impacts of a
project. It is an assessment of;
 The overall project performance and objective achievement in
light of relevance, efficiency, effectiveness, impact and
sustainability;
 It involves comparison of events over time (without and with
the project over time);
 Reasons contributing for success and failure;
 An in-depth review of the strategy used; and
 Lessons learned both from on-going &/or completed project.
 is a process which attempts to determine as systematically and
objectively as possible the relevance, effectiveness, efficiency
and impact of activities in the light of specified objectives

110
 6.2 Why M&E?
Project management needs continuous flow of information on these
changes in order to be able to mange properly the implementation.

 The best management instrument for obtaining adequate flow of

information is establishment of M&E system.

 Hence, adequate attention should be paid to design and use

practicable M&E system to ensure effective project
implementation.
Project plans can never be assumed perfect and corrective measures are
expected during the course of implementation.
Particularly
– project objectives …
– planning assumptions…
– implementation methods,
– the project context, etc.
must be continuously questioned on the basis of project implementation
111
experience and changes observed (internal and external.)
 6.3 Relationship Between M&E
• Both monitoring and evaluation are management tools. In the case
of monitoring, information for tracking progress is routinely
gathered. When findings are used to monitor the development results
(effects, impacts) it is sometimes refereed to as ongoing evaluation.

• Evaluation is more episodic(occasitional) than monitoring. It is

facilitated by monitoring but utilizes additional sources of
information. Many such sources are identified during project review
when there is a need to understand why inputs did not lead to
planned outputs. Evaluation focuses on specific questions related to
effectiveness and impact in order to influence future programs.

112
The Power of Measuring Results
► If you do not measure results, you can not tell success from failure
► If you can not see success, you can not reward it
► If you can not reward success, you are probably rewarding failure
► If you can not see success, you can not learn from it
► If you can not recognize failure, you can not correct it
► If you can demonstrate results, you can win public support

113
 Difference between Inputs,
Activities, Outputs, Outcomes and
Impact

LFA
 Levels of Objectives

High level objective to Overall

which the project Objectives/Goal
Contributes s

Sustainable benefits for the Project

target group Objectives/purpose

The product of the

Outputs
activities
Actions undertaken to
realize the project
Activities Means
objectives
Traditional vs. Result Based M&E
 Traditional vs. Result Based M&E
6.4.1 Traditional M&E approach
Addresses compliance—“did they do it” question
 Did they mobilize the needed inputs?
 Did they undertake and complete the agreed activities?
 Did they deliver the intended outputs (the products or services to be
produced)?

So What?
 So what that activities have taken place?
 So what that the outputs from these activities have been counted?

Is that enough to ascertain that whether the project/program/policy was a

success or a failure?

117
 Traditional Management
Traditional management focuses on implementation
–This involves tracking inputs ($$, resources, strategies),
activities (what actually took place) and some outputs
(the products or services produced)
–This approach focuses on monitoring how well a
policy, program or project is being implemented
–Often used to assess compliance with plans and budgets

118
 Changing Context: Focus on
Result
What are the results and impacts of government actions?
Governments are increasingly being called upon to demonstrate results in the face
of
• Citizen accountability
• Donor focus on results
• Political climate

Additional how do we know

• If policies, programs, and projects led to the desired results and outcomes?
• How do we measure progress? How can we tell success from failure?

119
 6.4.2 Result-based M&E approach
 A results-based approach can provide feedback on the actual outcomes and
goals of actions
 It is a management tool that if properly used can help systematically track
progress of project implementation, demonstrate results on the ground, and
assess whether changes to the project design are needed in view of evolving
circumstances

 It differs from traditional implementation-focused M&E in that it moves beyond

an emphasis on inputs and outputs to a greater focus on outcomes and impacts.
 The other major deviation from the traditional approach is that it moves away
from scheme-wise monitoring to resource/sector-based monitoring. It aims to
tracks outcomes at higher level that multiple schemes may be targeting.

 The focus of Results-based approach is therefore on better planning, targeting and

allocation of resources achieve certain targets and it links such allocation to
performance or results.

 Thus, this approach is the first step to introducing performance management and
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performance based budgeting.
Designing, Building and Sustaining a Results-
Based Monitoring and Evaluation System

Planning for
Selecting Key Improvement
Conducting a Indicators to — Selecting The Role of Using
Readiness Monitor Results Targets Evaluations Your
Assessment Outcomes Findings

1 2 3 4 5 6 7 8 9 10

Agreeing on Baseline Monitoring Reporting Your Sustaining

Outcomes to Data on for Results Findings the
Monitor and Indicators— M&E System
Evaluate Where Are Within Your
We Today? Organization
Results-Based Monitoring
Goal • Long-term, widespread
Results (Impacts) improvement in society

• Intermediate effects of
Outcomes
outputs on clients

• Products and services

Outputs
produced
Implementation

• Tasks personnel
Activities undertake to transform
inputs to outputs
• Financial, human, and
Inputs
material resources
Results-Based Monitoring:
Adult Literacy
• Higher income levels;
Goal
(Impacts)
increase access to higher
skill jobs

Outcomes
• Increased literacy skill; more
employment opportunities

• Number of adults completing

Outputs
literacy courses

Activities • Literacy training courses

Inputs • Facilities, trainers, materials

 Definition

Results-Based Evaluation
An assessment of a planned, ongoing, or
completed intervention to determine its
relevance, efficiency, effectiveness, impact and
sustainability. The intent is to incorporate
lessons learned into the decision-making
process.
 Evaluation Addresses
“Why” Questions – What caused the changes we are
monitoring

“How” Questions – What was the sequence or

processes that led to successful (or
not) outcomes

“Compliance/ – Did the promised activities actually

Accountability take place and as they were
Questions” planned?

Process/ Was the implementation process

Implementation followed as anticipated, and with
Questions what consequences
 Designing Good Evaluations

• Getting the questions right is critical

• Answering the questions is critical
• Supporting public sector decision-making with
credible and useful information is critical
 Results-Based Management Emphasizes
Implementation and Results

• Results-based management involves the regular

collection of information on how effective
government (or any organization) is performing
• Results-based management demonstrates
whether a policy, program or policy is
achieving its stated goals, or outcomes
• and it investigates why these goals are, or are
not, being achieved
127
 Results-based Management

• Long-term, widespread
Goal (Impacts)
improvement in society
Results

• Intermediate effects of
Outcomes
outputs on clients

• Products and services

Outputs produced
Implementatio

• Task personnel undertake to

Activities transform inputs and outputs

• Financial, human, and

Inputs material resources
n

128
 Results-Based Management is a Powerful Tool: It
1. Shifts from an input-activity-output focus to a focus on the outputs and
outcomes of public sector policies, programs and projects
2. Emphasizes effective resource allocation for planning and budgeting
3. Helps countries assess if they are using their scarce resources most
cost-effectively
4. Responds to elected officials and the public’s demands for
accountability
5. Managers are judged by their programs’ performance, not be their
control of inputs
6. Stresses knowledge and learning through continuous improvements
7. But recognize this is a political process with technical dimensions – not
vice versa

129
 Change is not Easy
 In most Government programs use of M&E data is only
for reporting and tracking of expenditures, disbursement
of funds.
 Focus is still on capturing inputs/outlays , rarely are
outcomes and impact captured systematically
 Shifting from ‘inputs/outlays’ focus to ‘results/outcome’
orientation is not a simple process; its success involves:
a) changing what gets collected and the manner in
which information is presented
b) bringing about effective changes to program
planning, budgeting, execution and evaluation, and
c) most importantly, effective change in the mindset of
all stakeholders from monitoring physical/financial
targets and achievements to outcomes indicators.
6.5 Types of Monitoring in M&E
1. Process Monitoring: often referred to as ‘activity monitoring
2. Compliance Monitoring: Compliance with donor regulations, grant,
contract requirements, local governmental regulations and laws,
ethical standards
3.Context Monitoring/ situation monitoring
4.Beneficiary Monitoring: overall perceptions of direct and indirect
beneficiaries in relation to a project.
5.Financial Monitoring: is to measure financial efficiency within a project
6.Organiational Monitoring: institutional development, communication,
collaboration, sustainability and capacity building within an
organization
7.Results Monitoring : project’s overall effects and impacts on the target
population
 6.6 Principles of M&E

The M&E system of any project should be:

1. Cost-effective
2. Understandable to both staff & partners (targeted)
3. Avoid unnecessary reporting
4. Provide consistent quality information on project
components
5. Responsive and emphasizes on decision making
6. Involve the various stakeholders of the project &
include their views

132
Evaluation
It is a key tool for enhancing the management of on-going
projects and improving the preparation of new projects.

When & What do we Evaluate?

• When ?
In addition to the time which is determined during project
planning/design, evaluation may be carried when:
– Monitoring report indicates an unexpected result which is positive or
negative

– Management requires additional information for decision-making

– Key questions to be resolved are identified during monitoring process

– Major changes occur in critical elements or key assumptions

– The need to extract key lessons learned arises.

133
What ?
• Although it varies on the type of evaluation carried among
others we have to assess:

– Relevance of the project

– Effectiveness and efficiency
– Adequacy of resources (availability & utilization)
– Attainment of expected results
– Whether the most needy or targeted groups/individuals are
being reached by the project
– Sustainability factors
– If expected benefits and impacts have been realized
– Replicability & lessons learned for the future.

134
Types of Evaluation
 can be seen in two ways i.e. in periods of evaluation and by persons
involved in the evaluation process.
• Based on the Period
i. Ex-ante / start-up/ evaluation,
ii. On-going or mid-term /formative/ evaluation,
iii. Terminal /summative/ evaluation; and
iv. Ex-post/impact evaluation.
Four common reasons for evaluation
• improving design and/or performance of polices, services/projects;
• making choices among activities;
• learning lessons for future application; and
• accountability
When to do an Evaluation?
Timing is affected by:
– its relevance to the sector/plan;
– its relevance to the project cycle, which is usually based on the above;
– a significant problem identified in the course of monitoring; &
– a financier/donor request
 10 types of Evaluation
1. Formative evaluation: conducted before the project
implementation phase
2. Process Evaluation: It is conducted as soon as the project
implementation stage begins ( activities)
3. Outcome Evaluation: conducted once the project activities
have been implemented
4. Summative Evaluation: This occurs immediately after project
conclusion to assess project efficacy and the instant changes
manifested by its interventions
5. Impact Evaluation: assesses the long term impact or
behavioral changes as a result of a project and its
interventions on the target community
6. Real-time Evaluation: undertaken during the project
implementation phase
7. Participatory Evaluation: is conducted collaboratively with the
beneficiaries, key stakeholders and partners to improve the
project implementation
8. Thematic Evaluation: focuses on one theme across a number
of projects, programs or the whole organization. The theme
could be anything, ranging from gender, migration, 136
 Distinctive Xts of M & E
Characteristics Monitoring Evaluation
Purpose/objective Specific Broad
Scope Narrow Broad
Frequency/Time Continuous Periodic
Data Gathered Primarily Primarily
Quantitative Qualitative
Main Action Oversight In-depth
analysis
Focus Inputs/Outputs Impact and
Sustainability
137
 Distinctive Characteristics …

Characteristics Monitoring Evaluation

What does it - Activities performed - Why and how
answers? - Outputs achieved results were achieved or not
(objectives) - Resources used -Strategy and policy options

- Quality of work performed

- Problems encountered (focus on effectiveness, and

- Rectifying measures relevance or impact)
(focuses on inputs, process,
output and work plan)

Actors Mainly Internal Internal/External

Analysis Simple Comparative Analytical
tools
Primary Users Small group/project Large group /Project
Managers Managers, planners,
Financers, etc.) 138
 Project Control
In the context of project management control is:
– The comparison of what has been achieved with what was
planned;
– Determination of necessary adjustments to the plan in order
to mitigate the effects, on overall performance of any
deviations from the plan;
– Is verifying whether everything occurs in conformity with the
plans adopted, the instructions issued and the principles
established; and
– Reporting on any deviations form the plan, the reasons for the
deviations and the corrective actions that need to be taken.

139
 Project Audits

• Audits investigate the degree of project compliance with laws,

regulations, guidelines and agreed-on plans and budgets. Audits
may be performed at any time during the programing cycle.

• A project audit overlaps somewhat with an evaluation since it

examines accomplishment of proposed work plans and objectives,
but an audit does not normally review the relevance or impact of
the project.

140
 Summary
Project monitoring, supervision and control are
management activities carried at different levels which
aimed at ensuring that the progress of a project
conforms to its plan. In other words, they aimed to see
that the corresponding amount of work is done within:-

– Specified quality & quantity

– the prescribed period of time, and
– the resources allocated for it.

141
 Chapter Seven
7. Project Closure / closeout
7.1 Who will close-out the project, settle all claims, and complete each procurement?
• Project clousure Phase is the process of finalizing all activities for the project or contract.
The key benefits of this process are the project or phase information is archived, the
planned work is completed, and organizational team resources are released to pursue new
endeavors.
• The Project Closure Phase is the last phase in the project life cycle.
• In this phase, you will formally close your project and then report its overall level
of success to your sponsor.
• The following two procedures to be performed in order to close out an entire
project :- i) Administrative closure and (ii)- Contract closure
• The benefit of these procedures is that we can use them to help transition the
project to the business and realize true project success.
Inputs:
Project management plan
Accepted deliverables
Organizational process assets
Tool: Expert Judgment, Meetings, Analytical Techniques
Outputs:
Final product, service, or result transition and Organizational process assets updates
 Project closure/Clouse out……..
• A project must be administratively closed once its product is successfully
delivered to the customer.
• A failed project must also be administratively closed.
• A deadlocked project (drastic change of focus, support, personnel, executive
decision, etc.) must be administratively closed

• Administrative closure is primarily an INTERNAL process, whereby the project

manager hands over the completed product/service to the end user, provides the
necessary training and starts any warranty/guaranty work.

• This is the final completion and closure of the project.

• Part of the Integration Management knowledge area, the Close Project or Phase
process is done when all the work has been verified, delivered, and accepted by
the customer.

• All open issues have been raised, and finalized (come to a conclusion and closure).
7.2 Activities during Project closure/Closeout stage
• Three broad activities are carried out at the closing stage of
the project:
 Administrative closure of contracts and accounts
 Performance appraisal and individual evaluation/
 Project audit /
• Project closeout phases include:-
• Physical Closeout / Technical Closeout – Demonstration that
the project has met its completion criteria.
• Administrative Closeout – Ensuring that all project
documentation has been approved and is in place.
• Financial Closeout – Contract Closeout and closure of all
financial packages.
– Assemble final reports from all participants
– Debrief policy leaders and external stakeholders
– Analyse results and document lessons learned
– Celebrate success
7.3 Circumstances for ending a project

• Project Closeout is the last phase in the project lifecycle. Closeout

begins when the program concludes through completion of Key
Performance Parameters (KPPs) that the project has met the goals
established.
• Although all projects must come to an end, a project can be
terminated for any number of reasons.
• Gray and Larson (2000) define five circumstances for ending a project:-
• Normal,
• Premature,
• Perpetual,
• Failed, and
• Changed priorities.
(i) Normal—A project that ends normally is one that
is completed as planned.
• The project scope is achieved within the cost,
quality, and schedule objectives, although there
probably was some variation and modification
along the way.
• The project is transferred to the project sponsor,
and the end of the project is marked with a
celebration, awards, and recognition for a good
job well done by those involved. As you might
suspect, this is an ideal situation.
• .
(ii) Premature—Occasionally, a project team may be
pushed to complete a project early even though the
system may not include all of the
envisioned(planned) features or functionality.
• For example, an organization may need to have a
new system operational—with only a core set of
original requirements— to respond to a
competitor's actions, to enter a new market early, or
as a result of a legal or governmental requirement.
• Although there is pressure to finish the project
early, the risks of this decision should be carefully
thought through by all the project stakeholders.
(iii) Perpetual—Some projects seem to take on a "life of their own" and
are known as runaway, or perpetual(Continious/unending), projects.
These projects never seem to end.
• Perpetual projects may result from delays or a scope or that was
never clearly defined or agreed upon.
• Then, the project sponsor (or even the team) may attempt to add on
various features or functionality to the system, which results in added
time and resources that increase the project schedule and drain the
project budget.
• Some runaway projects result from an organization not making the
appropriate decision to "pull the plug" on an unsuccessful project.
• The decision to terminate a project is not an easy one if egos and
perhaps even careers or jobs are on the line.
• .
(iv) Failed—Sometimes projects are just unsuccessful. In general, a
project fails if insufficient attention is paid to the people, processes, or
technology.

• Even though the project's Measurable organizational value(MOV)

may define the project's value to the organization, cost and
schedule overruns may drain the project's value to a point where the
costs of completing the project outweigh the benefits.
(v) Changed Priority—In some circumstances, a
project may be terminated as a result of a change in
priorities.
• Financial or economic reasons may dictate that
resources are no longer available to the project. Or,
management may decide to divert resources to
higher priority projects.
• This change can happen when the original
importance or value of the project was misjudged or
misrepresented or when organizational needs or
technology change over the course of a long-term
project. Some projects are "terminated by starvation."
Ten steps at the time of closing the project are:-
1 Develop Closing Procedures to help you get a closure easily.
2 Complete Contract closures – this area may need to be done multiple times for each
contract. No project can be closed without the contracts being closed first.
3 Verify product scope requirements –most essential step before the user signed-off.
4. Gain Formal Acceptance from the key stakeholders.
5. Submit the final Performance reporting – Important step. Most project managers
choose to skip the documentation part, and just move on to other projects. Remember
documentation of performance with test results, is as important as testing and verifying
the product.
6. Conduct post-project or phase-end review.
7. Index and Archive all relevant project documents in the Project Management
Information System (PMIS) to be used as historical data for future search and
references.
8. Document Lessons Learned on this project. Apply appropriate updates to
organizational process assets, so you and other project managers can benefit from
them, and do not have to start from scratch.
9. Handoff completed product to the customer or stakeholder.
10 Release resources back to Functional Managers in case of Matrix organization.
 Chapter Eight
8. The Ten Project Management Knowledge Areas (
• The project management knowledge areas refer to the various aspects of a
project and cover all processes and documentation necessary to plan,
manage, and complete a project. A project management professional will use
these knowledge areas to govern all projects. Each knowledge area forms a
chapter in their PMBOK guide.
• The ten knowledge areas Key to Overall Project Success
• What are the project management knowledge areas?
• Project integration management. ...
• Project scope management. ...
• Project time management. ...
• Project cost management. ...
• Project quality management. ...
• Project resource management. ...
• Project communications management. ...
• Project risk management.
• Project procurment management
• Project stakeholders management
 8.1 : Project Integration Management / የፕሮጀክት ውህደት ቅንጅት/ አስተዳደር

 Project integration management is the coordination of all elements of a project. This

includes coordinating tasks, resources, stakeholders, and any other project element. i.e
the 5 process groups, the 10 konwlege areas and the 47 logically grouped project
management processes

 Project managers must coordinate all of the other knowledge areas throughout a
project’s life cycle.

 Many new project managers have trouble looking at the “big picture” and want to
focus on too many details.

 Project integration management is the HEART of project management and is made up

of the day-to-day processes the project manager relies on to ensure that all of the
parts of the project work together.
• Put simply, project integration management is the way the gears of the project work
together.
• Within any project there are many moving parts: time management, cost
management, schedule conflicts, human resource issues, iterative planning, and much,
much more.
• Project integration management is the art and science of ensuring that your project
153
moves forward, and that your plan is fully developed and properly implemented. 153
Project Integration Management Processes

8.1.1 Develop Project Charter—The process of developing a document

that formally authorizes the existence of a project and provides the
project manager with the authority to apply organizational resources to
project activities.
8.1.2 Develop Project Management Plan—The process of defining,
preparing, and coordinating all subsidiary plans and integrating them
into a comprehensive project management plan. The project’s
integrated baselines and subsidiary plans may be included within the
project management plan.
8.1.3 Direct and Manage Project Work/execution —The process of leading
and performing the work defined in the project management plan and
implementing approved changes to achieve the project’s objectives.

154
 Project Integration Management Processes (cont’d)

8.1.4 Monitor and Control Project Work—The process of tracking,

reviewing, and reporting project progress against the performance
objectives defined in the project management plan.
8.1.5 Perform Integrated Change Control—The process of reviewing all
change requests; approving changes and managing changes to
deliverables, organizational process assets, project documents, and the
project management plan; and communicating their disposition.
8.1.6 Close Project or Phase—The process of finalizing all activities across
all of the Project Management Process Groups to formally complete
the phase or project.

155
 Components of a Charter
• Project purpose or justification,
• Measurable project objectives & related success criteria,
• High-level requirements,
• Assumptions and constraints,
• High-level project description and boundaries,
• High-level risks,
• Summary milestone schedule,
• Summary budget,
• Stakeholder list,
• Project approval requirements (i.e., what constitutes project success,
who decides the project is successful, and who signs off on the project),
• Assigned project manager, responsibility, and authority level, and
• Name and authority of the sponsor or other person(s) authorizing the
project charter.

156
Possible reasons for projects having ineffective charters

1. Business managers that sponsor projects are not experts in

project management
2. It is often not clear which role in an organisation is
responsible for developing a charter
3. If it is clearly the responsibility of the project manager,
project charters are often only developed half-heartedly,
leading to unclear vision from the beginning of the effort.

157
Summary
 8.2: Project Scope Management -ወሰን
• Project scope management includes the processes required to
insure that the project includes all the work required/relevant ,
and only the work required, to complete the project
successfully(i.e to achive the project objective).
• Project scope management is primarily concerned with
defining and controlling what is and is not included in the
project.
8.2 .1 Plan Scope Management
• It documents how the project scope will be defined, validated,
and controlled.
• The key benefit of this process is that it provides guidance and
direction on how scope will be managed throughout the
project life cycle.
159
 Project Scope Management …
8.2.2 Collect Requirements- we find out all of the stakeholders’ needs and write
them down so that we know what we build.
8.2.3 Define Scope- developing a detailed project scope
statement as the base for future project decisions.
8.2.4 Create WBS- subdividing the major project deliverables
and project work into smaller more manageable components.
8.2.5 Validate Scope: The process of formalizing acceptance of
the completed project deliverables.
8.2.6 Control Scope - controlling changes to the project scope. These processes
interact with each other and with processes in the other knowledge areas as
well.

In the project context, the term scope can refer to two issues :

– Product scope. The features and functions that characterize a product,

service, or result
– Project scope. The work that needs to be accomplished to deliver a product,
service, or result including the work that will not be done
160
 8.2.1 Plan Scope Management
Plan Scope Management is the process of creating a scope management plan that
documents how the project scope will be defined, validated, and controlled
Inputs:
a. Project Management Plan
b. Project Charter
c. Enterprise Environmental factors
d. Organizational Process Assets
Tools:
e. Expert Judgment
f. Meetings
Outputs:
g. Scope Management Plan
h. Requirements Management Plan

162
 8.2.2 Collect Requirements
• Gathering requirements is all about sitting down with all of the stakeholders
for your project and working out what their needs are, and that’s what you
do in the Collect Requirements process.

• If your project is going to be successful, you need to know what it will take
for all of your stakeholders to agree that your project has met its goals.

• You need to have a good idea of what’s required of your project up front, or
you’ll have a tough time knowing whether or not you’re doing a good job as
you go.

• That’s why you need to write down all of your project and product
requirements with enough detail that you can measure your team’s progress.

163
 8.2.2 Collect Requirements…..
Inputs:
a. Stakeholder Management Plan
b. Project Charter
c. Requirements Management Plan
d. Stakeholder Management Plan: stakeholder comm. requirements
e. Stakeholder Register
Tools
f. Interviews
g. Facilitated Workshops
h. Focus Groups
i. Group creativity techniques (brainstorming, nominal group technique,
mind/idea mapping, affinity diagram, multicriteria decision analysis) ( see
next slide)
j. Observation,
k. Surveys
Output: Requirements Documentation
Requirements Traceability Matrix
164
 8.2.2 Collect Requirements …

• Explanation of the tools

a. Mind Maps: visualizing our ideas and developing a map as to how we get
there
b. Delphi Technique: letting everyone in the group give their thoughts and
let them hand the response to the moderator/experts . The groups are
kept anonymous. We share only the ideas
c. Affinity Diagrams: posting ideas in walls and moving them around in
order to regroup them
d. Brainstorming: to think of new ideas
e. Nominal Group Technique: write the ideas as you find them and have
the group vote on which ones they like the most. Use the vote to rank all
of the ideas
f. Using Prototype: models of the product you want to produce

165
 8.2.3 Define Scope
• The Define Project Scope Process contains everything you need to
know before you can begin to break the project down into the work
that the team members will do.
Inputs
a. Project Charter
b. Requirements Document
c. Organizational Process Assets
Tools:
d. Facilitated Workshops:
e. Product Analysis: turn product elements to project work
f. Alternative Identification: to think of different ways how to do the
work.
g. Expert Judgment: bring in an expert to help you figure out what
work needs to be done

Output: Scope Statement

166
 8.2.4 Create Work breakdown structure(WBS)

• The Create WBS process is the most important process in the Scope
Project Management Knowledge are because it is where we actually
figure out all the work we’re going to do.
Inputs
a. Requirements Document
b. Project Scope Statement
c. Organizational Process Assets
Tool: Decomposition
Outputs
d. Work Breakdown Structure
e. Scope Baseline:is the approved version of a scope statement
f. WBS Dictionary: all details of the need to the project work
g. Project Document Updates

167
 8.2.5 Validate Scope
Inputs
a. Project Management Plan
b. Requirements Documents
c. Traceability Matrix
d. Deliverables
Tools: Inspection (stakeholders look closely at what the team did)
Outputs:
e. Accepted Deliverables
f. Change Requests
g. Project Document Updates
If things are not done properly, there could be some change

168
 8.2.6 Control Scope
• Somewhere along the way, you or someone else will realize that a change
needs to happen, and that change will affect the scope baseline
• That’s why you need the control scope process
Inputs
a. Project Management Plan
b. Requirements Documents
c. Traceability Matrix
d. Work Performance Information
e. Organizational Process Assets
Tools: Variance Analysis(ie. is the difference between a budgeted, planned, or standard cost and the
actual amount incurred/sold)
Outputs:
f. Work Performance Measurements
g. Updates to Organizational Process Assets
h. Project Document Updates
i. Updates to the Project Management Plan
169
 8.3 : Project Time/Schedule Management
PTM refers to a component of overall project management in which a timeline is analyzed and
developed for the completion of a project or deliverable.
8.3.1 Plan Schedule Management—The process of establishing the policies, procedures,
and documentation for planning, developing, managing, executing, and controlling the
project schedule.
8.3.2 Define Activities—The process of identifying and documenting the specific actions to
be performed to produce the project deliverables.
8.3.3 Sequence Activities—The process of identifying and documenting relationships among
the project activities.
8.3.4 Estimate Activity Resources—The process of estimating the type and quantities of
material, human resources, equipment, or supplies required to perform each activity.
8.3.5 Estimate Activity Durations—The process of estimating the number of work periods
needed to complete individual activities with estimated resources.
8.3.6 Develop Schedule—The process of analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project schedule model.
8.3.7 Control Schedule—The process of monitoring the status of project activities to update project
progress and manage changes to the schedule baseline to achieve the plan. Scheduling is the process of
arranging, controlling and optimizing work and workloads (activities) in a production process or manufacturing process.
8.3.1 Plan time/Schedule Management
• The Project Time Management processes and their associated tools
and techniques are documented in the schedule management plan.
• The schedule management plan is a subsidiary plan of, and
integrated with, the project management plan through the Develop
Project Management Plan process.
• The schedule management plan identifies a scheduling method and
scheduling tool and sets the format and establishes criteria for
developing and controlling the project schedule.
• The selected scheduling method defines the framework and
algorithms used in the scheduling tool to create the schedule model.
• Some of the better known scheduling methods include critical path
method (CPM) and critical chain method (CCM).

172
 8.3.1 Plan Schedule Management (cont….
The Project Time Management processes and their associated tools
and techniques are documented in the schedule management
plan
Inputs:
a. Project Management Plan
b. Project Charter
c. Enterprise Environmental factors
d. Organizational Process Assets
Tools:
e. Expert Judgment
f. Analytical Techniques (i.e An analytical technique (analytical method) is a procedure
or a method for the analysis of some problem, status or a fact. Analytical techniques are usually
time-limited and task-limited.

g. Meetings
Output: Schedule Management Plan
173
 8.3.2 Define Activities
• Defining the schedule activities involves identifying and documenting the
work that is planned to be performed.
Inputs
– Schedule management plan
– Scope baseline (The scope baseline includes all approved plan
elements that define scope.
– Enterprise environmental factors
– Organizational process assets
Tools & Techniques
– Decomposition
– Rolling wave planning(i.e Work to be done in the near term is based on high-
level assumptions; also, high-level milestones are set).
– Expert judgment

Outputs
– Activity list
– Activity attributes
– Milestone list
174
 8.3.3 Sequence Activities
• Activity sequencing involves identifying and documenting the logical relationships among
schedule activities.
• Schedule activities can be logical sequenced with proper precedence relationships, as
well as leads and lags to support later development of a realistic and achievable project
schedule.
• Sequencing can be performed by using project management software or by using
manual techniques
Inputs
– Schedule management plan
– Activity list
– Activity attributes (characteristics )
– Milestone list (key events, dates)
– Project scope statement
– Enterprise environmental factors
– Organizational process assets
Tools & Techniques
– Precedence diagramming method (PDM)
– Dependency determination
– Leads and lags (ie. are the acceleration or delaying of activities
Outputs:Project schedule network diagrams & Project documents updates
 8.3.4 Estimate Activity Resources
Estimating schedule activity resources involves determining what
resource (persons, equipment, or material) and what quantities of
each resources will be used, and when each resources will be
available to perform project activities.
Inputs Outputs
– Schedule management plan – Activity resource
– Activity list requirements
– Activity attributes – Resource breakdown
– Resource calendars structure
– Risk register – Project documents
– updates
Activity cost estimates
– Enterprise environmental factors
– Organizational process assets
Tools & Techniques
Resource calendars: a calendar
– Expert judgment that is used to reflect specific
– Alternative analysis working hours, vacations, leaves of
absence,& planned personal time
– Published estimated data for individual resources
– Bottom-up estimating
– Project management software
 8.3.5 Activity Duration Estimating

• The process of estimating schedule activity durations uses information

on schedule activity scope of work, required resource types, estimated
resources quantities, and resource calendars with resource availabilities.
• The inputs for the estimates of schedule activity duration originate from
the person or group on the project team who is most familiar with the
nature of work content is the specific schedule activity.
• The duration estimate is progressively elaborated, and the process
considers the quality and availability of the input data.
• For example, as the project engineering and design work evolves, more
detailed and precise data is available, and the accuracy of the duration
estimates improves.
• Thus, the duration estimate can be assumed to the progressively more
accurate and of better quality.

177
 8.3.5 Activity Duration Estimating
The process of estimating schedule activity durations uses information
on schedule activity scope of work, required resource types,
estimated resources quantities, and resource calendars with resource
availabilities.

Inputs
– Schedule management plan
– Activity list Tools & Techniques
– Activity attributes – Expert judgment
– Activity resource requirements – Analogous estimating
– Parametric estimating
– Resource calendars
– Three-point estimating
– Project scope statement
– Group decision-making techniques
– Risk register – Reserve analysis(analyzed from a cost
– Resource breakdown structure overruns point of view

– Enterprise environmental factors

– Organizational process assets
Outputs
– Activity duration estimates
– Project documents updates
178
•
8.3.6 Schedule Development
Schedule development can require that duration estimates and resource
estimates are reviewed and revised to create an approved project
schedule that can serve as a baseline against which progress can be
traced.
Tools & Techniques
Inputs  Schedule network analysis
 Schedule management plan  Critical path method
 Activity list  Critical chain method
 Activity attributes  Resource optimization
 Project schedule network techniques
diagrams  Modeling techniques
 Activity resource requirements  Leads and lags
 Resource calendars  Schedule compression
 Activity duration estimates  Scheduling tool
 Project scope statement
Outputs
 Risk register  Schedule baseline
 Project staff assignments  Project schedule
 Resource breakdown structure  Schedule data
 Enterprise environmental factors  Project calendars
 Organizational process assets  Project management plan
updates
 Project documents updates 179
 Activity Schedule
Ref no. Results and Responsibility Year 1 Year 2
activities
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1.1 Results

Activities

1.1.1

1.1.2

1.1.3

1.2

1.2.1

1.2.2

1.2.3

1.2.4
 8.3.7 Control Schedule

• Schedule control is concerned with:

– Determining the current status of the project schedule
– Influencing the factors that create schedule changes
– Determining that the project schedule has changed
– Managing the actual changes as they occur.

181
 8.3.7 Control Schedule
 Schedule control is concerned with:
 Determining the current status of the project schedule
 Influencing the factors that create schedule changes
 Determining that the project schedule has changed
 Managing the actual changes as they occur.

Inputs Outputs
• Project management plan • Work performance information
• Project schedule
• Schedule forecasts
• Work performance data
• Project calendars • Change requests
• Schedule data • Project management plan updates
• Organizational process assets • Project documents updates
Tools & Techniques • Organizational process assets
• Performance reviews updates
• Project management software
• Resource optimization techniques
• Modeling techniques
• Leads and lags
• Schedule compression
• Scheduling tool
182
 Project Scheduling
Types of Schedules
· In project management, a schedule is a listing of project's
milestones, activities, and deliverables, usually with intended
start and finish dates. Those items are often estimated by
other information included in the project schedule of
resource allocation, budget, task duration, and linkages of
dependencies and scheduled events. A schedule is commonly
used in the project planning and project portfolio management
parts of project management. Elements on a schedule may be
closely related to the work breakdown structure (WBS)
terminal elements, the Statement of work, or a
Contract Data Requirements List.
· There are many ways of presenting similar information, each with
different objectives
·Gantt Chart is another name for Bar Chart
·Milestone Chart
·Progress Chart
·Networks
·Earned Value or Trend lines
· And several others
Critical Path Method (CPM)
CPM : is a technique where you identify tasks that are necessary for
project completion and determine scheduling flexibilities
These actvity connection points are usually on the critical path of the
project.
 CPM is used when you are sure about the duration of each
activity
Critical path, a project management technique used to show the
sequence of activities in a project schedule, helps organizations get a
handle on this complexity between suppliers and customers.

Project management software lets you visualize this critical path—a path
that includes tasks with dependencies, arranged in a particular order
that’s required to complete the project on the shortest path to success.

Using project management tools to identify and manage the critical path
is an effective way to do everything from reminding product groups of
upcoming collaborative tasks to making sure that teams and vendors are
focusing on the right activity at the right time, or at least aware of
delays that can affect other pressing deadlines.
 Work Breakdown Structure


Work Breakdown Structure is an importnst step in
determining CPM

Activities can be divided into sub-activites and work
packages.

This process is called work breakdown structure
(WBS).

or Dividing project into tasks and subtasks is called
WBS.

185
Why Break Down the Work ?
The WBS facilitates:

Detailed planning.

Scheduling.

Cost estimating.

Risk management.

Budget preparation.

Monitoring and reporting.

It is the foundation for good project visibility and
management.

186
The WBS allows us to answer:

What tasks must be done?

When should the tasks be done?

Who will do each one?

How long will each task take?

How much will each task cost?

What resources are required for each task?

What progress is being achieved?

Are we going to be successful?

187
 Prepare Report

Prepare Report
Prepare Review Prepare
1.0 Prepare draft report
Draft Report Draft Report Final Report 2.0 Review draft report
3.0 Prepare final report
3.1 Write final report
Organizaion-Chart 3.2 Print final report
Format Write Print
Final Report Final Report
Outline Format

Bubble Format
Review
Final Report
Review
Draft Report Prepare
Report

Prepare Write Print

Draft Report Final Report Final Report

188
 A sample Work Breakdown Structure
Serve Pizzas to Customers

Provide the Place Cook the Food Serve Customers (Others)

Make the Dough Cook the Sauce Build the Pizza

WBS needs to be broken down into

manageable, meaningful pieces.

The danger here is in getting them too

small.

189
 Precedence Diagramming Method (PDM)

Start Activity A Activity B Activity C

Finish
Activity D

• The PDM is further defined by four types of

logical relationships.
• The terms dependencies and precedence
also are used to describe these relationships.
190
 Precedence Diagramming Method (PDM)
 The four dependencies, or logical relationships, are as follows:
 Finish-to-start (FS) relationship is the most frequently used relationship.
 In this relationship the predecessor must finish before the successor can start. In PDM
diagrams, this is the most often used logical relationship.
 Finish-to-finish (FF) relationship says that the predecessor activity must finish before
the successor activity finishes. i.e two activities can run parallrelly , but one can not
finish before the other finish
 Start-to-start (SS) says that as the predecessor activity starts the successive activity
can start.
 Start-to-finish (SF) relationship is about the relationship such that the predecessor
activity must start before the successor activity can finish. This logical relationship is
seldom used.
• Finish to start: An activity must finish before the successor can start.
• Finish to finish: An activity must finish before the successor can finish.
• Start to start: An activity must start before the successor can start.
• Start to finish: An activity must start before the successor can finish. It is very
rare to found.

191
 Exercise 1: Draw PDM or AON network diagram
Activity Name Predecessor
A None
B A
C B
D G
E D
F A
G C, F
H D
I A
J D, I

192
 Exercise 2: Draw PDM or AON network diagram

Name Predecessor

Start none
A Start
B A
C B
D Start
E D
F B
G C
H D
I E, H
Finish F, G,I

193
 Exercise 3: Draw PDM or AON network diagram

Name Predecessor

A None
B A
C A
D B, C
E D
F D
G D
H E, F, G
I H

194
 Exercise 4: Draw PDM or AON network diagram

Activity Name Predecessor

Start None
1 Start
2 1
3 2
4 Start
5 3
6 Start
7 6
Finish 7,4,5
195
 Quiz
Draw AON Diagram for the following list of Activities
Activity Predecessor
A None
B None
C None
D A, B
E A, B
F A, B
G C
H D
I D, F, G, E, H
J D, F, G
K I, J

196
 How to find the Critical Path
1. Start with an activity network diagram

4 2
A C
Start
7
3 B Finish
D
5
E

2. Find all of the paths in the diagram. A path is any string of activities that goes from
the start of the project to the end.

3. Find the duration of each path by adding up the durations of each of the activities on
the path.

 The critical path is the one with the longest duration

 Network Diagram
• Day “0” notion formula
• Activity Duration = EF - ES or ( see examples from next slide of zero method )
• Activity Duration = LF - LS
• Total Float = LS - ES or LF – EF
• EF = ES + duration
• ES = EF of predecessor
• LF = LS of successor

• Day “1” Notion formula

• Perform Forward Pass ( see examples from next slide of one method )
• The early start of activity A is always “1” as this is start activity node. This indicates that the
first activity starts on day 1.
• So early finish is calculated as follows.
• EF = ES + Duration -1
• ES2 = EF1 + 1
When there are two (or more) tasks that merge back into one, choose the highest LS.
• Perform Backward Pass
• LS = LF – Duration + 1
• LF2 = LS1 – 1
When two (or more) tasks merge back into one, choose the lowest LS.
Total Float (float) of an activity = Late Start of an activity – Early Start of an activity or
Total Float of an activity = Late Finish of an activity – Early Finish of an activity
Free Float = ES of the successor activity – EF of the current activity
• Let us calculate ES, EF, LS and LF of whole project using Zero method,

• And, now ES, EF, LS and LF of whole project using one method:

199
200
 Example
Immediate
Activity Description Predecessor(s) Responsibility

A Select administrative and medical staff.

B Select site and do site survey.
C Select equipment.
D Prepare final construction plans and layout.
E Bring utilities to the site.
F Interview applicants and fill positions in
nursing, support staff, maintenance,
and security.
G Purchase and take delivery of equipment.
H Construct the hospital.
I Develop an information system.
J Install the equipment.
K Train nurses and support staff.

201
 Example Activity Duration
Immediate
Activity Description Predecessor(s) Responsibility

A Select administrative and medical staff. —

B Select site and do site survey. —
C Select equipment. A 12
D Prepare final construction plans and layout. 9 B
E Bring utilities to the site. B 10
F Interview applicants and fill positions in 10A
nursing, support staff, maintenance,24
and security. 10
G Purchase and take delivery of equipment. C
H Construct the hospital. D
I Develop an information system. A 35
J Install the equipment. E,G,H 40
K Train nurses and support staff. F,I,J 15
4
6
at is the project completion duration?(completion time?
This information indicates that the total time required to
complete activities is 175 weeks. However, we can see from the
network that several of the activities can be conducted 202
simultaneously (A and B, for example).
 Diagramming the Network
Immediate
Predecessor
I
A

— A F K
B

—
C Start C G Finish

A
D
B D H J
B
E
E
B
F
203
 Cont’d…
Paths are the sequence of
activities between a project’s I
start and finish.
A F K

Path
Time (wks) Start C G Finish

A-I-K
33 B D H J
A-F-K 28
A-C-G-J-K 67
B-D-H-J-K 69 E
B-E-J-K 43
204
 Cont’d…
The critical path is the
longest path!
I

Path
Time (wks) A F K

A-I-K 33
A-F-K 28 Start C G Finish
A-C-G-J-K 67
B-D-H-J-K 69
B-E-J-K 43 B D H J

Project Expected
Time is 69 wks. E

205
Application

206
Application Solution

207
 Self-check Exercise
Find the critical path
7 2
4
B C
A 3
Start G
5 8
4
D F
E
Finish
4 2
H I

a) Critical Path: _______________

b) Duration of the Critical Path: _________
c) Total Number of Paths: ______
d) Indicate slack/float for the paths and
activities
 Self-check Exercise
Find the critical path 9
5
C
A 3
Start D
7
8 B 5
E
G
Finish
2
F

a) Critical Path: _______________

b) Duration of the Critical Path: _________
c) Total Number of Paths: ______
 Self-check Exercise
Find the critical path
6 4
4
B C
A 3
Start G
3 6
9
D F
E
Finish
7 3 3
J H I

2 6
K L

a) Critical Path: _______________

b) Duration of the Critical Path: _________
c) Total Number of Paths: ______
 Self-check Exercise
Find the critical path
5 3
8
B C
A 2
Start G
6 2
7
D F
E
Finish
5 3 3
J H I

4 7
K L

a) Critical Path: _______________

b) Duration of the Critical Path: _________
c) Total Number of Paths: ______
d) Float of each path and activities
 8.4: Project Cost Management የፕሮጀክት ወጪ አስተዳደር
• Cost management is the process of planning, estimating, allocating, and controlling the
costs in a project. It allows a business to predict coming expenses in order to reduce the
chances of it going over budget. Projected costs are calculated during the planning
phase of a project and must be approved before work begins.
• 8.4.1 Plan Cost Management—The process that establishes the
policies, procedures, and documentation for planning, managing,
expending, and controlling project costs.
• 8.4.2 Estimate Costs—The process of developing an approximation of
the monetary resources needed to complete project activities.
• 8.4.3 Determine Budget—The process of aggregating the estimated
costs of individual activities or work packages to establish an authorized
cost baseline.
• 8.4.4 Control Costs—The process of monitoring the status of the
project to update the project costs and managing changes to the cost
baseline.

212
 8.4.1 Plan Cost Management
• Cost management plan is the outline of the project's estimation, allocation
and control of costs for the required resources to complete all project
activities.It is in general terms analyzes how the project costs will be
planned, funded and controlled. So, the Plan Cost Management process is
where you plan out all the work you’ll do to make sure your project
doesn’t cost more than you’ve budgeted.
Inputs
– Project management plan
– Project charter
– Enterprise environmental factors
– Organizational process assets
Tools & Techniques
– Expert judgment
– Analytical techniques
– Meetings
Outputs: Cost management plan

214
8.4.2 Estimate Costs
The estimate cost process refers an expected cost of performing work to each activity
Inputs
 Cost management plan
–Human resource management plan
– Scope baseline
– Project schedule
– Risk register
– Enterprise environmental factors
– Organizational process assets
Tools & Techniques
– Expert judgment
– Analogous estimating (i.e is the act of using former projects to estimate how long or how much a current project
will take or cost.
– Parametric estimating(a more accurate technique for estimating cost and duration)
– Bottom-up estimating
– Three-point estimating(optimistic estimate, most likely estimate & pessimistic)
– Reserve analysis (is one of the techniques used to determine a project budget from a cost overruns point of view)
– Cost of quality, Project management software
– Vendor bid analysis, Group decision-making techniques
Outputs
– Activity cost estimates
– Basis of estimates and Project documents updates
215
 It is the
8.4.3 Determine Budget
process of aggregating the estimated costs of individual
activities or work packages to establish an authorized cost baseline
Tools & Techniques
Inputs
– Cost aggregation(summing the cost for the
– Cost management plan individual work)
– Scope baseline – Reserve analysis(i.e
– Activity cost estimates a project is analyzed from a cost overruns point of
– Basis of estimates view)

– Project schedule – Expert judgment

– Resource calendars – Historical relationships
– Risk register – Funding limit reconciliation(i.e A
technique that compares the funding available in each
– Agreements time period (say a month) to the planned expenditure
in that time period to ensure that the planned
– Organizational process assets expenditure is within the available funding)
Outputs
• Cost baseline
• Project funding requirements
• Project documents updates
216
 8.4.4 Control Costs
Project cost control includes Influencing the factors that
create changes to the project baseline .
Ensuring requested changes are agreed upon
Inputs Outputs
– Project management plan – Work performance
– Project funding requirements information
– – Cost forecasts
Work performance data
– – Change requests
Organizational process assets
– Project management plan
Tools & Techniques
updates
– Earned value management(see next slide)
– Project documents
– Forecasting
updates
– To-complete performance index (TCPI) i.e it – Organizational process
is one of the forecasting tools of earned value
management (EVM) assets updates
– Performance reviews
– Project management software
– Reserve analysis
217
 Earned Value Analysis
Earned Value (EV) is the percent of the total budget actually completed at a point in
time. This is also known as the budgeted cost of work performed (BCWP). EV is a way to
measure and monitor the level of work completed on a project against the plan.
Mr Xand Y are working on a
Ayat reconstruction project.
Specifically, they have been
• Knowing where you are on schedule?
assigned to reconstruct the
road from Ayertena to Ayat
with 42km. Each Km has a • Knowing where you are on budget?
budget of $550. They are
each supposed to complete • Knowing where you are on work
1.5 KM a day. It is the end of accomplished?
the 28th day. They have
reconstructed 33 KM in the
road construction. A status .
report from the project
accountant shows that they
have spent $22,000.
Calculate the Earned Value ?
Earned value (EV)—the sum of approved cost estimates for activities
completed during a given period.
Earned Value = % of completed work X BAC (Budget at Completion).
218
• Project Quality Management processes include all the
activities of the performing organization that determine
quality policies, objectives, and responsibilities so that the
project will satisfy the needs for which it was undertaken.
• It implements the quality management system through the
policy, procedures, and processes of quality planning, quality
assurance, and quality control, with continuous process
improvement activities conducted throughout, as appropriate.
• Quality is “the degree to which a set of inherent
characteristics fulfill requirements”.
• Quality is the measurement of how closely your product
meets its requirements.

8.5: Project Quality Management(PQM)

219
የፕሮጀክት ጥራት አስተዳደር
 Projcet Quality Management…..

• Customer satisfaction is about making sure that the people

who are paying for the end product are happy with what they
get.
• When the team gathers requirements for the specification, they
try to write down all of the things that the customers want in
the product so that you know how to make them happy.
• Fitness for use is about making sure that the product you build
has the best design possible to fit the customer’s needs.
• Conformance to requirements is the core of both customer
satisfaction and fitness for use. Above all, your product needs to
do what you wrote down in your requirements specification.

220
 Project Quality Management
8.5.1 Plan Quality Management—The process of identifying quality
requirements and/or standards for the project and its deliverables and
documenting how the project will demonstrate compliance with quality
requirements.

8.5.2 Perform Quality Assurance(QA)—you take all of the outputs from Plan
Quality Management and Control Quality and look at them to see if you can
find ways to improve your process and take action. QA is a way of
preventing mistakes and defects in manufactured products and avoiding
problems when delivering products or services to customer.

8.5.3 Control Quality(CQ)—The process of monitoring and recording results of

executing the quality activities to assess performance and recommend
necessary changes.

QA Vs CQ= quality assurance relates to how a process is performed or how a

product is made, quality control is more the inspection aspect of quality
management.
 8.5.1 Plan Quality Management
A project quality plan (PQP), is a project-specific quality plan that describes the
activities, standards, tools and processes necessary to achieve quality in
the delivery of a project.
Inputs
Outputs
• Project management plan
• Quality management plan
• Stakeholder register
• Process improvement plan
• Risk register
• Quality metrics
• Requirements documentation
• Quality checklists
• Enterprise environmental factors
• Project documents updates
• Organizational process assets
Tools & Techniques
Cause-and-effect diagram (also called Ishikawa or fishbone diagrams): Identifies many possible
• Cost-benefit analysis causes for an effect or problem and sorts ideas into useful categories.
• Cost of quality Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can
be adapted for a wide variety of purposes.
• Seven basic quality tools Control chart: Graph used to study how a process changes over time. Comparing current data to
• Benchmarking historical control limits leads to conclusions about whether the process variation is consistent (in
control) or is unpredictable (out of control, affected by special causes of variation).
• Design of experiments
Histogram: The most commonly used graph for showing frequency distributions, or how often each
• Statistical sampling different value in a set of data occurs.
• Additional quality planning Pareto chart: A bar graph that shows which factors are more significant.
Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a
tools relationship.
• Meetings Stratification: A technique that separates data gathered from a variety of sources so 222that patterns
can be seen (some lists replace "stratification" with "flowchart" or "run chart")
 8.5.2 Perform Quality Assurance
Quality assurance encompasses all the activities implemented in a
quality system to provide confidence that the project will satisfy the
relevant quality standards. Quality assurance is provided by a Quality
Assurance dept. Quality assurance can be INTERNAL ( from the project
management team to the performing organization). Quality assurance
can be EXTERNAL (provided to the customer and other parties actively
involved in the work of the project
Inputs
• Quality management plan
• Process improvement plan
• Quality metrics Outputs
• Quality control measurements • Change requests
• Project documents • Project management plan updates
• Project documents updates
Tools & Techniques
• Organizational process assets
• Quality management and control tools
updates
• Quality audits
• Process analysis
223
 8.5.3 Control Quality
Quality control involves monitoring specific project results to
determine if they comply with relevant standards and identifying
ways to eliminate causes of unsatisfactory results.

Inputs Outputs
• Project management plan • Quality control measurements
• Quality metrics • Validated changes
• Quality checklists • Validated deliverables
• Work performance data
• Work performance information
• Approved change requests
• Change requests
• Deliverables
• Project documents • Project management plan
• Organizational process assets updates
Tools & Techniques • Project documents updates
• Seven basic quality tools • Organizational process assets
• Statistical sampling updates
• Inspection
• Approved change requests review
 Quality Planning Inputs
i)Quality policy
• The overall intentions and direction of an organization with regard to
quality, as formally expressed by the top management
• In the case of a joint venture, a quality policy for the individual project
should be developed
• The management team is responsible for dissipating the quality policy to all
project stakeholders through appropriate information distribution channels

ii)Scope Statement

• The scope statement is a key input to quality planning because it

documents major project deliverables as well as project objectives which
serve to define important stakeholder requirements
 Quality Planning Inputs
iii) Product description
• Although the elements of the product description may be embodied in the
scope statement, the product description often contains details of technical
issues and other concerns that may affect quality planning

iv) Standards and Regulations

• The project management team any application-area-specific standards or
regulations that may affect the project

V)Other Process Outputs

• In addition to the scope statement and product description, processes in
other knowledge areas may produce outputs that should be considered as
part of the quality planning
• Example: procurement planning outputs may identify contractor quality
requirements that should be reflected in the overall Quality Management
Plan
 Tools and Techniques for Quality Planning
 Benefit / cost analysis
• The planning process must consider benefit/cost tradeoffs
• The Primary Benefit: Is less work, higher productivity, lower costs, and increased
stakeholder satisfaction
• The Primary Cost: Is the expenses associated with PQM activities
Note: it is elementary that the benefit should outweigh the cost
 Benchmarking
• Benchmarking involves comparing actual or planned project practices to those
of other projects to generate ideas to:
1- Generate ideas for improvement
2- provide a standard for measurement of performance

Note: other projects compared may be within the same organization or out side and
may be within the same application area or in another
 Tools and Techniques for Quality Planning
 Flow charting

• The flowcharting techniques in quality management generally include

- cause and effect diagram
- System or process flow charts

• Flowcharting can help in anticipating probable quality problems and thus helps
to develop approaches for dealing with them

 Design of Experiments
• This is an analytical technique which aims to define variables that have most
influence on the overall outcome
• This technique is commonly applicable to the product of the project issues.
• However this technique can also be used in project management issues such as
cost and schedule tradeoffs to allow for optima solutions.
 Tools and Techniques for Quality Control

 Control Charts
• These charts are graphical representations that display the
result of a process over time and are used to determine if the
process is “in control”
• When in control the process should not be adjusted , however
it may be changed in order to provide improvements
• Control charts may be used to monitor any type of output
variable
• Control charts are most often used to monitor repetitive
activity in production but can also be used to monitor cost
and schedule variances
 Tools and Techniques for Quality Control

 Pareto Diagram
• A Pareto diagram is a histogram ordered by frequency of
occurrence which shows how many results were generated by
what category or identified cause
• The project management team should take action to fix the
problems that are causing the greatest number of defects first
• Typically the Pareto diagram reflects that a relatively small
number of causes are responsible for the majority of the
problems or defects.
 Tools and Techniques for Quality Control

 Statistical Sampling
• Statistical sampling involves choosing a part of a population of
interest for inspection
• Appropriate sampling can effectively reduce the cost of quality
control
• There is a vast body of knowledge related to statistical sampling
and therefore the management must be aware of the various
sampling techniques
 Flowcharting
• Flowcharting is used in quality control
to help analyze how a problem occurs
 Tools and Techniques for Quality Control

 Trend Analysis
• The trend analysis involves the use of
mathematical techniques to forecast future
outcomes based on historical results it is often
used to monitor:
- Technical performance – how many defects have
been identified and how many remain uncorrected
- Cost and schedule performance – how many
activities in a certain period were completed with significant
variances
 Outputs from Quality Planning
 Quality Management Plan
• The quality management plan should describe how a project management
team will implement its quality policy
• Also called Quality System, (in ISO terminology), the plan should define :-
- The organizational structure
- Roles and responsibilities
- Resources needed for implementation of quality management

• The Quality Plan should address:-

- Quality Control of the project
- Quality Assurance
- Quality Improvement of the project

Note: the project quality plan can be highly detailed or broadly framed based
on the needs of the project
 Outputs from Quality Planning
 Operational Definitions
• An operational definition describes what something is and how it is
measured by the quality control process. For example:
- the project management team must indicate the start and end of every
activity in a detailed schedule
- Weather the whole activity or certain deliverables are to be measured
Operational definitions are also called Metrics in some areas of application.
 Checklists
• A checklist is a structured tool used to verify that a set of required steps or
requirements have been performed.
• Many organizations have standard checklists to ensure consistency of
frequently performed activities
 Inputs To Other Processes
• The quality planning process may identify need for further activity in another
area
 Outputs for Quality Control
• Quality improvement ( previously described)

• Acceptance decisions, where the inspected items will either be accepted or

rejected and those rejected may be reworked
• Rework, which is an action taken to bring defects or nonconforming items
into compliance with requirements and specifications. Rework is a frequent
cause of project over-runs and the project management team must make an
effort to minimize it .
• Completed Checklists, which become a part of a project record when they
are used
• Process Adjustments, which involves immediate corrective or preventive
action as a result of quality control measurements. In some cases the
adjustment may need to be handled according to procedures for overall
change control
 8.6: Project Human Resource Management
• There are four processes in this knowledge area. While the first belongs
to Planning Process group, the other three are in the Executing Process
group.
8.6.1 Plan Human Resource Management. The process of identifying and
documenting project roles, responsibilities, required skills, reporting
relationships, and creating a staffing management plan.
8.6.2 Acquire Project Team. The process of confirming human resource
availability and obtaining the team necessary to complete project
activities.
8.6.3 Develop Project Team. The process of improving competencies, team
member interaction, and overall team environment to enhance project
performance.
8.6.4 Manage Project Team—The process of tracking team member
performance, providing feedback, resolving issues, and managing
changes to optimize project performance.

236
 8.6.1 Plan Human Resource Management…
In the Plan Human Resource Management process, you plan out exactly which
resources you’ll need, what their roles and responsibilities are, and how
you’ll train your team and make sure they stay motivated
Inputs
• Project management plan
• Activity resource requirements
• Enterprise environmental factors
• Organizational process assets
Tools & Techniques
• Organization charts and position descriptions
• Networking
• Organizational theory
• Expert judgment
• Meetings
Outputs
• Human resource management plan
237
 8.6.2 Acquire Project Team
Acquiring project team is the process of obtaining the human resources
needed to complete the project.

Inputs
• Human resource management plan
• Enterprise environmental factors
• Organizational process assets
Tools & Techniques
• Pre-assignment
• Negotiation
• Acquisition
• Virtual teams
• Multi-criteria decision analysis
Outputs
• Project staff assignments
• Resource calendars
• Project management plan updates 238
 8.6.3 Develop Project Team
Develop project team improves the competencies and interactions of
team members to enhance project performance.

Inputs
• Human resource management plan
• Project staff assignments
• Resource calendars Outputs
Tools & Techniques • Team performance assessments
• Interpersonal skills • Enterprise environmental factors
updates
• Training
• Team-building activities
• Ground rules
• Colocation
• Recognition and rewards
• Personnel assessment tools

239
 .
8.6.4 Manage Project Team
It involves tracking team members performance,
Inputs Outputs
providing feedback, resolving issues,
• and
Change
coordinating
requests
• Human resource management plan
• Projectchanges to enhance project
staff assignments performance
• Project management plan updates
• Team performance assessments • Project documents updates
• Issue log • Enterprise environmental factors
• updates
Work performance reports
• Organizational process assets
• Organizational process assets
updates
Tools & Techniques
• Observation and conversation
• Project Performance Appraisals
• Conflict management
• Interpersonal skills

240
Human Resources Management in detail
 8.7: Project Communications Management

• Project communication management (PCM) is the knowledge

area that employs the process required to ensure timely and
appropriate generations, collection, distribution, storage, retrieval
and ultimate disposition of project information.
• The project communications management process provides the
critical links among people and information that are necessary for
successful communications.
• Project managers can spend much amount of time
communicating with the project team, stakeholders, customer,
and sponsor.
• 90% of a project manager’s job is communication.
• Everyone involved in the project should understand how
communications affect the project as a whole.

242
 Elements in the communication process

There are four main elements (green-

coloured) and four sub-elements of
communication (the rest).
Noise

 Source  Message  Channel  Receiver

Receptors
Feedback Response

 243
 Characteristics of Communication
Communication has the following four characteristics

 Continuous: - because a person does not stop

communicating
 Personal: - because the meaning depends on how we
interpret the message.
 Circular: - because it is difficult to identify the point where
communication begins and ends.
 Irreversible: - because once something is said or written and
reaches the receiver, the act becomes irreversible.

244
 Levels of Communication

There are four levels of communication:

1. Interpersonal-occurs b/n two or more persons in a face-to-face situation
2. Group – occurs b/n individuals as members of a group
3. Organization- occurs within an organization which is hierarchically
structured
4. Mass- consists of transmission of messages from a single organizational
point to mass audience who do not have direct access to the sender.

 245
 Media of Organizational
Communication

• Organizational communication can take several forms:

 Oral: -helps us get feedback immediately. But very difficult to maintain the
consistency & accuracy of a message.
 Written: -provide records and references. Possible to maintain uniformity, &
accuracy of the message.
 Visual: - draw the attention of the audience & is effective(i.e picture, film, or
display used to illustrate something).
 Non-verbal: - facial expressions, gestures & body movements.

 246
 Problems in Organizational Communication

• Barriers in Communication
1. Problems in Perception: - perception problems because of differences
in backgrounds, knowledge & experiences.
2. Semantic Problems: - problems of encoding & decoding (because of
language capacity).
3. Poor expression of Messages: - jargons should be avoided
4. Unclarified Assumptions: - if a receiver falsely assumes certain
things, which are not intended by the sender, confusions will arise.
5. Interpretation Problems: - sending messages in all languages
understood by all receivers
6. Psychological Barriers: - motivation, fear, love affect how one
perceives messages.
7. Poor Credibility of Communication: - perceived credibility of the
communicator.
8. Organizational Barriers: - organizational structure

 247
 Factors influencing perception...
1. Psychological set-having a mindset in us about the world because of our experience
or hearsay. This is prejuging.

2. Sensory organization-we organize the information supplied to us by our sensory

organs based on their resemblance and arrangement.

3. Form- it is easier to notice what is organized and structured than what is not.

4. Closure-refers to our ability to fill up gaps according to the logic of the message. E.g.
500 + 500 = 100. You know that „0“ is missing.

5. Common-fate - noticing figures sharing common fate (moving in the same direction).
 Effective Communication
• Issues to consider
 Ensure that all members of organization understand the languages used &
explain the difficult technical terms
 Properly & timely plan your communication according to the purpose by
selecting appropriate media
 Eliminate noise in transmission of a message
 Be sensitive to the receiver‘s need & problems
 Develop listening skills since it is important for effective communication
 Give importance to feedback
 Improve your writing by use of simple words, short sentences, active voice
 Improve your oral communication skills through constant practice
 Develop credibility and sincerity
 Create a healthy atmosphere for work
 Make use of improved devises
 Selection of channels
• Selection of channels depnds on:
What is available
How much money can be spent
Interest of the S and R
Which channels are received by most people
Which channels have the most impact
The kind of purpose, type and content of the
message

 250
 Project Communications Management
• Communications Management makes sure everybody gets the
right message at the right time at the right people .
• The project communications Management processes include
the following;
8.7.1 Plan Communications Management-determining the
information and communication needs of the project
stakeholders.
8.7.2 Manage Communications-making needed information
available to project stakeholders in a timely manner
8.7.3 Control Communications– collecting and distribute
performance information. This includes status reporting,
progress measurement, and forecasting.

251
 8.7.1 Plan Communications Management
Every project should include some type of communications
management plan, a document that guides project communications

Inputs
• Project management plan
• Stakeholder register
Outputs
• Enterprise environmental factors
• Communications
• Organizational process assets
management plan
Tools & Techniques
• Project documents updates
• Communication requirements
Analysis
• Communication technology
• Communication models
• Communication methods (eg oral,
written )
• Meetings

252
 8.7.2 Manage Communications
Manage Communications is in the Executing process group, because
it happens while the work is being done

Inputs Outputs
• Communications management • Project communications
plan • Project management plan
• Work performance reports updates
• Enterprise environmental factors • Project documents updates
• Organizational process assets • Organizational process assets
Tools & Techniques updates
• Communication technology
• Communication models
• Communication methods
• Information management
systems
• Performance reporting

253
 Conflict Handling Modes, in Preference
Order
• Confrontation or problem-solving: directly face a conflict
• Compromise: use a give-and-take approach
• Smoothing: de-emphasize areas of differences and emphasize
areas of agreement
• Forcing: the win-lose approach
• Withdrawal: retreat or withdraw from an actual or potential
disagreement

254
 8.7.3 Control Communications
Control Communications is in the Monitoring and
Controlling process group.

Inputs
Outputs
• Project management plan
• Work performance information
• Project communications
• Change requests
• Issue log
• Project management plan
• Work performance data
updates
• Organizational process assets
• Project documents updates
Tools & Techniques • Organizational process assets
• Information management systems updates
• Expert judgment
• Meetings

Issue log is a documentation element of

software project management that contains a list
of ongoing and closed issues of the project
255
 8.8: Project Risk Management
• Project risk management is the art and science of identifying,
assessing, and responding to project Risk throughout the life
of a project and in the best interests of its objectives
• Project risk is the cumulative effect of the chances of
uncertain occurrences adversely affecting project objectives
• Project risk management includes the processes concerned
with conducting risk management planning, identification,
analysis, responses, and monitoring and control on the
project; most of these processes are updated throughout the
project.
• The objectives of project risk management are to increase the
probability and impact of positive events, and decrease the
probability and impact of events adverse to the project.

256
 What is Risk?
• A risk is any uncertain event or condition that might affect your
project. Not all risks are negative.
• Risk
– A possible future event if occurs will lead to an
undesirable outcome.
• Project Risk
– The cumulative effect of the chances of an uncertain
occurrence that will adversely affect project
objectives.
• Risk Management
– A systematic and explicit approach for identifying,
quantifying, and controlling project risk.
– Risk = f(event, uncertainty, damage)
– Risk = f(hazard, safeguard)
– Risk = probability X impact 257
 Purpose of Risk
1.
Management
Identify factors that are likely to impact the project
objectives of scope, quality, cost and time

2. Quantify the likely impact of each factor

3. Give a baseline for project non-controllables

4. Mitigate impacts by exercising influence over

project controllables

The pmbok also points out that risk management

includes maximizing the results of positive events and
minimizing the consequences of adverse events.

258
 Benefits of Risk Management
• More and better information is available
during planning and decision making
• Project objectives are verified
• Improved communications
• Higher probability of project success
• Proactive approach
• Project might be canceled

259
 Types of projcet risks

 The Level of Risk in any Contract depends on the degree and Extent of
Controllable and Un controllable Risks.
 Controllable Risks: Included factor of human error and decision
making:
 These risks are Internal to the project and are controllable by good
management and good quality control procedures.
 Can be seen and adequate provision can be made against its
occurrence.
 Example the 9 PM knowledge areas
 Uncontrollable Risks:
 Include factors that are outside the immediate control of the projects.
 E.g Adverse weather (Force Majeure). This can be covered with some
form at insurance, Conflict, flood etc
 Project Risk
Integration
Communication
Scope
Stakeholders

Project Risk
Time Cost

Quality
Procurement
Human Resources

261
 INTEGRATING RISK
PROJECT
MANAGEMENT
INTEGRATION

INFORMATION /
Life Cycle and COMMUNICATIONS
SCOPE Environment Variables

Expectations Ideas, Directives,

Feasibility Data Exchange Accuracy STAKEHOLDERS
Interests/expectations

Requirements PROJECT Availability

QUALITY Productivity HUMAN
Standards RISK
RESOURCES
Time Objectives, Services, Plant, Materials:
Restraints Performance

Cost Objectives, CONTRACT /

TIME Restraints
PROCUREMENT

COST

262
 Project Risk Management(i.e 6 processes
8.8.1 Plan Risk management: deciding how to approach, plan, and
execute the risk management activities for a project.
8.8.2 Identify Risks: The first thing you need to do when planning for
risks is to gather the team together and come up with a list of
every possible risk you can think of. The Risk Breakdown
Structur(RBS) you created during Plan Risk Management will make
it a lot easier to do this.
8.8.3 Perform Qualitative Risk Analysis: Once you’ve got a list of
risks, you’ll need to get a good idea of the probability and impact
of each risk. Remember the probability and impact guidelines in
the Risk Management plan? This is where you use them to assign a
probability and impact to each risk! Perform Qualitative Risk
Analysis helps you prioritize each risk and figure out its probability
and impact.

263
 Project Risk Management
8.8.4 Perform Quantitative Risk Analysis: By the time you get
here, you’ve got a list of risks, with a probability and impact
assigned to each. That’s a great starting point, but sometimes
you need more information if you want to make good
decisions… You can make better decisions with more precise
information. That’s what this process is about—assigning
numerical values for the probability and impact of each risk.
8.8.5 Plan Risk Responses: All that’s left now is to plan responses
to each risk! This is where you decide whether to avoid,
mitigate, transfer, or accept…and how you’ll do it! The goal of
all of the risk planning processes is to produce the risk
register. That’s your main weapon against risk.
8.8.6 Control Risks: When it comes to risk, the earlier you can
react, the better for everybody.

264
• There have been different ways proposed of categorizing risk (Risk
matrix
• High-Impact Low-Likelihood Low-Impact High-Likelihood
• Strategies for Negative Risks
• Avoid. Risk avoidance is a risk response strategy whereby the project team
acts to eliminate the threat or protect the project from its impact. It usually
involves changing the project management plan to eliminate the threat
entirely.
• Transfer. Risk transference is a risk response strategy whereby the project
team shifts the impact of a threat to a third party, together with ownership
of the response. Transferring the risk simply gives another party
responsibility for its management—it does not eliminate it.
• Mitigate. Risk mitigation is a risk response strategy whereby the project
team acts to reduce the probability of occurrence or impact of a risk.
• Accept. Risk acceptance is a risk response strategy whereby the project
team decides to acknowledge the risk and not take any action unless the
risk occurs. This strategy is adopted where it is not possible or cost-effective
to address a specific risk in any other way.

266
• Strategies for Positive Risks or Opportunities
• Exploit. The exploit strategy may be selected for risks with positive
impacts where the organization wishes to ensure that the opportunity is
realized. This strategy seeks to eliminate the uncertainty associated with a
particular upside risk by ensuring the opportunity definitely happens.
• Enhance. The enhance strategy is used to increase the probability and/or
the positive impacts of an opportunity. Identifying and maximizing key
drivers of these positive-impact risks may increase the probability of their
occurrence.
• Share. Sharing a positive risk involves allocating some or all of the
ownership of the opportunity to a third party who is best able to capture
the opportunity for the benefit of the project.
• Accept. Accepting an opportunity is being willing to take advantage of the
opportunity if it arises, but not actively pursuing it.

267
Risk Management

268
 8.9: Project Procurement Management
• Procurement, in terms of project management, is when you need to purchase, rent or
contract with some external resource to meet your project goal. These relationships, like
any process in the project, need management.
• Procurement is the process of finding and agreeing to terms, and acquiring goods, services,
or works from an external source, often via a tendering or competitive bidding process.
• Procurement is used to ensure the buyer receives goods, services, or works at the best
possible price when aspects such as quality, quantity, time, and location are compared..

Procurement is the acquisition of:

• Goods
• Works or services
• Property, plant and/or equipment
Through
• Purchase
• Hire, lease, rental or exchange
 Procurement » mean obtaining goods, works, consultancy or other services through
purchasing, hiring or obtaining by any other contractual means; #Ó»$ TKƒ °n ¨‹”'
¾Ó”v ²`õ Y^¨‹”“ ›ÑMÓKA„‹” uÓ»'uŸ=^à ¨ÃU uT“†¨<U K?L }Sddà ¨<M
TÓ–ƒ ’¨<( Proclamation No. 649/2009) 269
• The following are the Generic Stages of the Procurement Process:-

i) Identify need =Need identification stage

ii) Generate a detailed specification =specifics required

iii) Request for tenders =Request For and Submission of Tenders

iv. Source selection = evaluation of bids from the various respondents based on a pre
determined set evaluation criteria

v. Contracting =the award of the contract to the bidder offering best value for money' and also
meets the set criteria

vi. Receipt &payment =a delivery note is signed by the procuring entity and a Goods Received
Note(GRN)is raised. Marking the beginning of the payment process

Vii.Consumption/use=greatlyi nfluencesl ongterm relationships with suppliers as the buyer will

know if he is getting value for money

viii. Contract management =delivered as agreed to in the contractor claim liquidated damages
if delivery is delayed
ix. Renewal =request for new stock./There-order process

x. Decommissioning and disposal =Decommissioning refers to withdrawal from active service

without discountinuance of service
 Procurement ..Defn
•The act of obtaining or buying
goods and services.
The process includes preparation
aprocessing of a demand as well as
the end receipt and approval
of payment. It often involves:-

(1) purchase planning,

(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.
• Rights in procurmnet
• Client needs are unique and consequently each project meeting those needs has unique
characteristics. The six rights are a series of checkpoints to ensure your company
procurement process is ethical, effective and efficient.

• Right Source – are you purchasing from the correct source? This is especially important for
international transactions. Will import duties and taxes or licences apply? Does the
company you purchase from look after its workers? Do they operate ethically?
• Right Price – are you purchasing within the budget? Are you monitoring the cost to ensure
you are receiving quality for money? Check if the cost is affected by quantity such as
minimum order quantities (MOQ) or volume discounts.
• Right Quantity – can you manage the quantity required against the price? Do not
overstock on items unnecessarily as this can tie-up company cash flow in overstocked
items. Can the supplier deliver in the volumes you require? Consider systems such as Just
in Time (JIT).
• Right Time – Delivery needs to happen as planned so you can manage your inventory
effectively. Is the most efficient shipping method being utilised? Right Place – can the
goods be delivered to the correct place as required?.
• Right Quality – if the product up to the standard required
• Right Place – can the goods be delivered to the correct place as required? Some
international shippers are only willing to ship to the nearest port – can you effectively
arrange onward delivery?
• Project Procurement Management includes the processes necessary
to purchase or acquire products(goods), services, or results needed
from outside the project team.
• The organization can be either the buyer or seller of the products,
services, or results of a project.
• Project Procurement Management includes the contract
management and change control processes required to develop and
administer contracts or purchase orders issued by authorized project
team members.
• Project Procurement Management also includes controlling any
contract issued by an outside organization (the buyer) that is
acquiring deliverables from the project from the performing
organization (the seller), and administering contractual obligations
placed on the project team by the contract.
 Project Procurement Management ( i.e 4 process group )

8.9.1 Plan Procurement Management—The process of

documenting project procurement decisions, specifying the
approach, and identifying potential sellers.
8.9.2 Conduct Procurements—The process of obtaining seller
responses, selecting a seller, and awarding a contract.
8.9.3 Control Procurements—The process of managing
procurement relationships, monitoring contract performance,
and making changes and corrections as appropriate.
8.9.4 Close Procurements—The process of completing each
project procurement.
 Project Procurement management includes the processes required to acquire
goods or services from outside the project team. It includes Contract
Management and Change Control Processes. And includes controlling contract
issues by an outside organization.

 Project procurement management is broken down into four

processes.
Make or Buy Analysis Goods & Servises for the projcet
• Used to determine whether a particular product can be
produced by the performing organization
• Analysis should include: -
• Both indirect and direct costs
• Prospective as well as the immediate needs of the
performing organization.
• For example: Whether a capital goods item can be used for
other current or future projects of the organization
(ongoing need of the item)
• Additional capacity is available for use within the
organization
• Proprietary or business critical activity, which is core
business for the company (e.g., designing of chips in a chip
manufacturing company)
 Make-or Buy Example
• Assume you can rent/lease an item you need for a project for
$150/day. To purchase the item, the investment cost is $1,000,
and the daily cost would be another $50/day.
• How long will it take for the rent cost to be the same as the
purchase cost?
• If you need the item for 12 days, should you rent it or purchase it?
• Set up an equation so the “make” is equal to the “buy”
• In this example, use the following equation. Let d be the number of
days to use the item.
Soultions: Rent = 150 usd for 12days= 1800
purchase=1000+ (50usd for 12 days=600)=1600

The rent cost is the same as the purchase cost at 10 days

• If you need the item for 12 days, it would be more economical to
purchase it
277
• Comparing the cost of Make or Buy
• Question: You are considering whether to buy or make a
software product:
• If you buy, the cost is $ 80,000, and the cost of procurement
and integrating in your company is $ 1,000
• If you want to make it yourself, the product will require
seven software engineers working three months. Salary of
each software engineer is $ 4,000 per month. The overhead
costs apportioned to the project will be $ 2,000.
• Which option will you choose—make or buy?
• Answer: If you buy, cost will be: $ 80,000 + $ 1,000= $ 81,000
• If you make, cost will be: $ 4,000 x 7 x 3 + $ 2,000= $ 86,000
 So, it is better for you to buy.
Comparing the cost of Rent (lease) or Buy:
• Question: You are considering whether to buy or lease a machine for
your heavy engineering plant. How will the duration of the project
influence your decision?
• If you buy, the cost is $ 29,000, and the one-time cost of procurement
and integrating in your company is $ 1,000
• If you rent/ lease, you have to pay $ 10,000 as down payment and $
5,000 per month

• Answer: If you buy, cost is: $ 29,000 + $ 1,000 = $ 30,000

• Assuming the lease is for M months, the cost is: $ 10,000 + $ 5,000 x
M
• The cost of buy = cost of lease, if : $ 30,000 = $ 10,000 + $ 5,000 x M
• M = 20,000/5,000 = four months
• So, if the duration of the project is less than four months, you should
lease—otherwise, you should buy.
• Make or buy decisions…
- depends on type of business/project ?? ?
• Nuclear power plant
• Road
• House
• Car
• Meat
• bread
1.Cost
2.Frequency
3.Complexity
4.Uniqueness
5.Degree of transaction specific investment
Contract and Outsoursing
What is a CONTRACT (¨<M)?
• የኮንትራት አስተዳደር

• A contract is a compulsory agreement between two or more parties and is constructed

such that one party gives something up (money) and the other party receives something
(goods or services) in return.

 Contract: An agreement between two or more parties to perform or to refrain from some
act now or in the future. A legally enforceable agreement.

 A contract is any agreement between two or more parties where one party agrees to
provide certain deliveries or services, and the other party agrees to pay for those
deliveries or services.

 A Contract is a legally binding detailed formal document that refers to an entire agreement
between two or more parties. All terms & conditions of a Contract must be met by both
the parties. Anything not mentioned in the Contract is not Legally Binding to anyone.
Why outsource
 To reduce both fixed and recurrent costs
 To allow the client organization to focus on its core
business
 To access skills and technologies
 To provide flexibility
 To increase accountability

Debates on Outsourcing
Some companies, such as Wal-Mart, prefer to do no
outsourcing at all, while others do a lot of outsourcing
Most organizations do some form of outsourcing to meet
their IT needs and spend most money within their own
country
 Parts of contract :Contracts contain two parts:
Part one contains the general condition of contract and the second part contains
the special condition of contract
• The general condition of contract includes:
• The right and obligation of both parties
• Advance payment
• Force majeure(unforeseeable circumstance that prevent some one from
fulfilling a contract )
• Dispute resolution mechanism
• Penalty clauses
• Termination
• The special condition of contract:
• Are mainly restricted to the particular application of an agreement and these
conditions of the agreement are deemed to be specific clauses to the contract.
• For example the contract may state choice of law due to involvement of
foreigners or the contract execution deemed to be elsewhere than the place of
formation of the contract.
• Therefore the governing law (choice of law) of the contract must be stated in
order to avoid future dispute to the contract.
• All type of contracts involves four elements and contract without these elements is an
imaginable. These basic elements of the contract are discussed as follows;
• A) Capacity: the agreeing parties must have a capacity to enter in to a contract. Minors and
judicial interdict persons cannot enter into contract due to their incapacitate status to enter in to
any commercial dealing or what so ever dealing that establishes accountability.
• B) Consent: is a declaration of intention to be bound by an obligation. Consent is expressed either
in the form of offer and acceptance. Offer is a declaration of intention to enter into contracting
agreement whereas acceptance is agreeing to the declared intention and to be bound by the
obligation. Therefore offer and acceptance are declared to other person by oral, written, signal
and conduct ways of communication.
• C) Object: refers as to the particular obligation that the parties have agreed to undertake. Thus
object of the parties means the actual agreement of the parties to act, not to act or to give.
• Clarity of objects-the object of the contract should not be ambiguous.
• Possibility of object-the object of the contract must be possible and parties must not bind
themselves to things which are impossible to perform. Contract wants to protect the public from
superstitious believe.
• Legality and morality of the object-a contract shall not be of no effect where the obligation of
both parties or to either one of them is unlawful or immoral.
• Motive of the parties- both parties must clearly know the content of the contract and each party
should fully understand motive, need and expectation of the other party.
• D)Form of the contract: refers to the way the contract gets its power of authorization. It clearly
used as a source as to how a third parties could know about agreement of the contract. Hence
the general rule of form of contracts may be in written or oral form. When contract is in written
form, third parties know that there is agreement by reading the document where as if it’s oral its
Why contract management matters ?
• Failures make headlines

• Monitoring: performance, commercial aspects, delivery, improvement, complaints

and customer satisfaction.

• The management of various facets of a contract to ensure that the contractor's

total performance is in accordance with the contractual commitments and that
obligations to the purchaser are fulfilled.

• Process ensuring that the buyer and seller both perform to the specifications.

• summarized as the process of systematically and efficiently managing contract

creation, execution, and analysis for the purpose of maximizing financial and
operational performance and minimizing risk
Why should we know types of contract?

• Whether you’re managing a small project or a large complex program you need a
basic understanding of the different types of contract you’re likely to encounter
when buying from external organizations and 3rd parties
• A Valid Contract Must:
• i) Be between competent parties.
• Ii). Accomplish a lawful purpose.
• Iii). Include an offer and acceptance of that offer.
• Iv).Involve an exchange of value.

• A. Competent parties:
• Legal age
• With appropriate authority
• Mentally competent
• B.Lawful purpose:
• Does not violate applicable laws
• Compatible with public policy

C. Offer and Acceptance

• Anything said or done that shows a willingness to exchange value.
• Offers and acceptances may be:
• Written
• Spoken
• Demonstrated through action

• D. Exchange of Value
• Both parties must receive something: -
• Financial or non-financial
• Directly or indirectly
• Understanding the Terms and Conditions
Plain, ordinary, and popular meanings overrule
technical jargon — when in doubt, define the term
within the contract.
With two different but equally probable meanings, a
contract
will be interpreted against the author.
The same word means the same thing throughout the
document.
“May” is not a requirement!
“About”, “approximately,” and “almost” do not
constitute a
guarantee.
Types / Categories of Contracts

(i) Fixed Price Lump Sum

• This is the simplest type of all contracts. The terms are quite
straightforward and easy to understand.
• To put in simple, the service provider agrees to provide a defined
service for a specific period of time and the client agrees to pay a
fixed amount of money for the service.
• This contract type may define various milestones for the deliveries
as well as Key Performance Indicators(KPIs)
• In addition, the contractor may have an acceptance criteria
defined for the milestones and the final delivery.
• The main advantages of this type of contract is that the contractor
knows the total project cost before the project commences.
• (ii) Unit Price
• In this model, the project is divided into units and the
charge for each unit is defined. This contract type can be
introduced as one of the more flexible methods
compared to fixed price contract.
• Usually, the owner contractor/client of the project
decides on the estimates and asks the bidders to bid of
each element of the project.
• After bidding, depending on the bid amounts and the
qualifications of bidders, the entire project may be given
to the same service provider or different units may be
allocated to different service providers.
• This is a good approach when different project units
require different expertise to complete.
(iii) Incentive
• Incentive contracts are usually used when there is some
level of uncertainty in the project cost.
• Although there are nearly-accurate estimations, the
technological challenges may impact on the overall
resources as well as the effort.
• This type of contract is common for the projects involving
pilot programs or the project that harness new technologies.
• There are three cost factors in an Incentive contract; target
price, target profit and the maximum cost.
• The main mechanism of Incentive contract is to divide any
target price overrun between the client and the service
provider in order to minimize the business risks for both
parties
(iv) Cost Plus
• In this contract model, the services provider is
reimbursed for their machinery, labour and other costs,
in addition to contractor paying an agreed fee to the
service provider.
• In this method, the service provider should offer a
detailed schedule and the resource allocation for the
project.
• Apart from that, all the costs should be properly listed
and should be reported to the contractor periodically.
• The payments may be paid by the contractor at a certain
frequency such as monthly, quarterly or by the end of
milestones.
(V) Retainer: Time and Material - T&M
• This is one of the most beautiful engagements that can
get into by two or more parties. This engagement type is
the most risk-free type where the time and material used
for the project are priced.
• The contractor only requires knowing the time and
material for the project in order to make the payments.
This type of contract has short delivery cycles, and for
each cycle, separate estimates are sent of the contractor.
• Once the contractor signs off the estimate and Statement
of Work (SOW), the service provider can start work.
• Unlike most of the other contract types, retainer contracts
are mostly used for long-term business engagements.
Contract Types Versus Risk

293
Contract Type Selection
 Other types of contract
• An express contract is a legal agreement in which the terms are transparent and known to all
the parties involved (e.g. a mortgage(loan ) with a bank)
• An implied contract is a contract that is implied, or inferred by the parties' conduct. (e.g. at a
restaurant, it is implied that after eating dinner the customer will pay the bill)
• Most contracts are under seal – a formal, written contract that is signed, witnessed, and
marked with a seal.
• A simple contract is a contract that is not under seal (verbal, written, or implied).
(i) Formal Contract: A contract that requires a special form or method of formation (creation) in
order to be enforceable.
Contract Under Seal: A formalized writing with a special seal attached.
Recognizance: An acknowledgment in court by a person that he or she will perform some
specified obligation or pay a certain sum if he or she fails to perform (e.g., personal recognizance
bond).
Negotiable Instrument: A check, note, draft, or certificate of deposit -- each of which requires
certain formalities (to be discussed later).
Letter of Credit: An agreement to pay that is contingent upon the receipt of documents (e.g.,
invoices and bills of lading) evidencing receipt of and title to goods shipped.
(ii) Informal Contract: A contract that does not require a specified form or method of formation
in order to be valid.
 Selecting the Appropriate Contract Type

• Usually, the type of the contract used for the business

engagement varies depending on the type of the work and
the nature of the industry ( projcet ).
• Selecting the contract type is the most crucial step of
establishing a business agreement with another party. This
step determines the possible engagement risks.
• Therefore, companies should get into contracts where
there is a minimum risk for their business. It is always a
good idea to engage in fixed bids fixed priced whenever
the project is short-termed and predictable.

• If the project nature is exploratory, it is always best to

adopt retainer or cost plus contract types.
 Firm Fixed Price: Underrun

Buyer View Seller Estimate Seller Actual

Cost n/a 200,000 190,000
Profit/loss n/a 25,000 35,000
Contract Amount 225,000 225,000 225,000

Firm Fixed Price: Overrun

Buyer View Seller Estimate Seller Actual

Cost n/a 200,000 230,000
Profit/loss n/a 25,000 -5,000
Contract Amount 225,000 225,000 225,000
 Remarks form above calculation
• Any costs associated with overruns or under runs to the target
costs are shared between the buyer and seller in accordance with
a formula agreed to at the outset by both parties.
• These formulas will adjust the final seller fees upward or
downward to the maximum or minimum fee arrangement
specified in their contract.
• The cost sharing formula under incentive type contracts may be
set at any rate formula which adds to 100%, but typically they
will be set in the ranges of 90/10; 80/20; 70/30; 60/40, etc.
(Cient / Contractor)
• The higher values shown on the left side will apply against the
target costs, and the lower values on the right apply to
adjustments in the seller's target fee.
• Formulas that you will to know to calculate the incentive fees for CPIF and FPIF.
• Target Cost – A projected cost of the project agreed upon by the buyer and the seller before project
work begins. This is the buyer’s budget for the project.
• Actual Cost – The actual cost of the project calculated after the project is completed. This is the sum of
the project costs plus the fees paid to the seller.
• Target Fee – A fee paid to the seller if the work is completed at Target Cost.
• Cost Variance – The difference between Target Cost and Actual Cost. Positive variance is good.
• Share Ratio – The ratio of dividing the Cost Variance between the buyer and the seller.
• Formula 1: Cost Variance = Target Cost – Actual Cost
• The cost variance is the difference between Target Cost and Actual Cost. If the variance is positive, it is
good. Negative variance is bad for both the buyer and the seller.
• Formula 2: Buyer’s Share = Cost Variance * Buyer’s Share Ratio
• The buyer and the seller will split the cost variance in an incentive fee contract. The buyer’s share ratio
will be pre-determined in the contract. The buyer’s share represents the extra savings or extra costs
that the buyer incurs.
• Formula 3: Seller’s Share = Cost Variance * Seller’s Share Ratio
• The seller’s share represents the percentage of the cost variance that will be paid to or paid by the
seller. If the seller’s share is positive, the seller will make a bonus on top of their fees. If the seller’s
share is negative, the seller will make less money than their pre-determined fees. The seller’s share
ratio is determined in the contract before the project begins.
• Formula 4: Buyer’s Share Ratio + Seller’s Share Ratio = 1
• The sum of the buyer’s share ratio and seller’s share ratio equals 1.
• Formula 5: Fee = Target Fee + Seller’s Share
• The total amount of money paid to the seller is the sum of the Target Fee plus Seller’s Share. The Target
Fee is pre-determined, and the Seller’s Share is based on whether the seller is able to meet pre-
determined performance criteria.
• Formula 6: Total Price = Actual Cost + Target Fee
• The total cost of the project paid by the buyer is the sum of the Actual Cost plus the Target Fees.
 CPFF vs. CPI F: Underrun

Estimated CPFF Actual CPI F Actual

Cost 100,000 90,000 90,000
Fee 8, 000 8,000 8,000
Incentive (60/40) n/a n/a +4000
Contract Amount 108,000 98,000 102,000
CPFF vs. CPI F: Overerrun

Estimated CPFF Actual CPI F Actual

Cost 100,000 110,000 110,000
Fee 8, 000 8,000 8,000
Incentive (30/70) n/a n/a -7000
Contract Amount 108,000 98,000 102,000
Not 102000, Correction
Benefit/Cost Sharing Ratio for cost under runs = 60% Client / 40% Contractor =111,000
Benefit/Cost Sharing Ratio for cost over runs = 30% Client / 70% Contractor
• Factors to Consider When Choosing Type of
Contract
Detailed requirements = price-based
Many able vendors = price-based
Urgent = hybrid (i.e prce+cost )
Complex requirements = cost-based
High value contract = cost-based
 Contract Termination (Discharge)
 The liabilities of parties under a contract can be discharged (quitted) in
a number of different ways. Refer below the methods by which liabilities
can be discharged in the contract:
 Performing the Contract/
 Breach/
 Frustration፡
 Rescission/ (is a general downturn in any economy. A recession is associated
with high unemployment, slowing gross domestic product, and high inflation
 Rectification: the action of putting something right;
correction
 Illegality
 Termination
 see details in the next slide
 Contract Termination (Discharge)
Performing the Contract
 When the contract has been successfully performed and all parties are
satisfied.
Breach
 A breach of contract occurs when one party acts in
contravention(violation) of one or more terms or conditions of the
contract.
 If you order a car and the supplies a motor cycle. This is a breach of
contract as one has to supply the good as detailed in the contract of sale.
Remedy: The remedy for this is normally DAMAGES:
 The supplier would have to refund the full cost of car or simply supply
another one of equal value and quality.
Frustration
 This occurs when an contract cannot be performed, even if both parties
wish to do so.
 If Contract cannot be performed legally, and therefore becomes
 Contract Termination (Discharge)
Rectification
 This is a situation where Contract terms and conditions have been
wrongly worded or phrased.
 One or more terms can be rectified to make the meaning clear and
unambiguous.
 It has been rectified to reflect the true Intentions of the contracting
parties.

Termination
 Most standard forms of contract allow the contract to be
determined under certain circumstances.
 Most will specify under which issues should a contract be
terminated and what process to follow.
E.g Failure to pay the contractor as agreed, failure Not to complete
 8.10: Stakeholder Management
8.10.1 Identify Stakeholders—The process of identifying the people, groups, or
organizations that could impact or be impacted by a decision, activity, or
outcome of the project; and analyzing and documenting relevant information
regarding their interests, involvement, interdependencies, influence, and
potential impact on project success.
8.10.2 Plan Stakeholder Management—The process of developing appropriate
management strategies to effectively engage stakeholders throughout the
project life cycle, based on the analysis of their needs, interests, and potential
impact on project success.
8.10.3 Manage Stakeholder Engagement—The process of communicating and
working with stakeholders to meet their needs/expectations, address issues
as they occur, and foster appropriate stakeholder engagement in project
activities throughout the project life cycle.
8.10.4 Control Stakeholder Engagement—The process of monitoring overall
project stakeholder relationships and adjusting strategies and plans for
engaging stakeholders.

305
 Key players: who are key players ?
 The project manager
• Is responsible for achieving project objectives .
• Manages the project:
– Planning, organizing, leading, controlling (monitoring progress)
– Communicating, balancing conflicting requirements, managing stakeholders,
building & inspiring the team
– Sharing success, accepts all blame!
 SPONSOR– the person or group that provides the financial resources, in cash or kind, for the
project
– Project Initiator
– Ensures project relevance
– Helps in objectives setting
 Customer/user/client– the person or organization that will use the project/s product.
 Performing organization—the enterprise whose employees are most directly involved in doing
the work of the project.
 Project team members– the group that is performing the work of the project
 Project management team– the members of the project team who are directly involved in
project management activities
 Potential opponents: Groups which may oppose or obstruct a project.
 SUPPLIER-- Provides resources
 Stakeholder analysis matrix …
Stakeholders and Interests and how Capacity and Possible
their basic affected by the motivation to bring actions to
characteristics problem(s) about change address
stakeholder
interests

Stakeholder 1 Keen interest in Awareness

reducing the raising?,
problem lobby?

Stakeholder 2
Stakeholder 3
Stakeholder 4
 Method of Carrying out a Stakeholder analysis…

Step 1: Stakeholder analysis matrix

• List all the possible stakeholders in the project. Divide these into primary and
secondary stakeholders
• In the second column, write down the interests of each stakeholder in relation to
the project and its objectives
• In the third column, write down the likely impact of the project on each
stakeholder’s interests. This enables you to know how to approach the different
stakeholders throughout the course of the project. Use symbols as follows:
+ potential positive impact on interest,
- Potential negative impact on interest
+/- possible positive and negative impact on interest
? Uncertain
• In the fourth column, indicate the priority that the project should give to each
stakeholder in meeting their interests. Use the scale 1 to 5 , where 1 is the highest
priority
 Method of Carrying out a Stakeholder analysis…
• Example 1: A community identified their priority need as improved access to safe
water and produced the following table
Stakeholders Interests Likely impact Priority

Primary
Local Better health + 1
community

Women Better health, Walk less far to + 1

collect water, Opportunity to
socialize, Safety while collecting
water

Children Better health, walk less far to + 1

collect water, time to play

Water sellers income - 1

Secondary

Community Reduced workload, income + 2

health workers

Health NGOs Better health + 3

MoH Achievement of targets + 4

Donors Effective spending of funds, + 4

achievement of objectives
Method of Carrying out a Stakeholder analysis…
Step 2: Table showing influence and importance of stakeholders
• Influence:- is the power that stakeholders have over the project
• Importance:- is the priority given by the project to satisfy the needs and interests of each
stakeholder
• Some stakeholders will have more influence on the project than others
• While some are in a position to influence the project so that it is successful, there might be
others who feel threatened by it

A B
High
Importance

D C
Low

Low Influence High

Method of Carrying out a Stakeholder analysis…

• Answers to the exercise

Boxes A, B and C are the key stakeholders of the project. They can significantly
influence the project or are most important if project objectives are to be met
Box A:- Stakeholders of high importance to the project, but with low influence.
They need special initiatives to ensure their interests are protected
Box B:- Stakeholders of high importance to the project, who can also influence its
success . It is important to develop good working relationships with these
stakeholders to ensure adequate support for the project
Box C:- Stakeholders with high influence who can affect the project impact, but
whose interests are not the target of the project. These stakeholders may be
the source of risk. Relationships with these stakeholders are important
Box D:- Stakeholders of low priority but who may need limited monitoring and
evaluation to check that they have not become high priority
 Method of Carrying out a Stakeholder analysis…

Primary Stakeholders
A B
3 1. Local community
High

7
2
1 2. Women
8 3. Children
Importance

5 4. Water sellers
D C 6
4 Secondary Stakeholders
5. Community health workers
Low

6. Health NGOs
7. Ministry of Health

Influence
8. Donors
Low
High
 Method of Carrying out a Stakeholder analysis…
• Active participation is likely to have many benefits, although it is not a
guarantee of project success
• Achieving full participation is not easy. It can also take a lot of time, and
conflicting interests are likely to come to the surface
Little input
by others
Being consulted, Work with
Others analyze and others
Decide course action
Control,
Being informed, Co-operation/
others set the agenda
collective action or
Partnership Co-learning
Consultation

Being manipulated; Informing

No real power

Coercion

Decided by others Decided by ourselves

Levels of participation
 Syndicate Exercise
• Is partnership easy?
• How might the challenges of partnership be overcome?
• To identify the level of participation, which is appropriate for different
stakeholders, draw a summary participation matrix similar to the one
below
• The columns represent the levels of participation and the rows stand for
the stages of the project cycle
• Work through the list of stakeholders in the stakeholder matrix
• Think about the extent to which they should participate for each stage of
the project cycle
• Consider the amount of interest or influence they have
• Ensure that primary stakeholders participate as fully as possible to
encourage ownership of the project
 Method of Carrying out a Stakeholder analysis…
• Example: The rural community identified their priority need as improved access to safe water, and filled in
a matrix table with the following information

Type of Participation

inform consult partnership control

Identification Health NGOs Cross section of

Donor community
Design Donor Community Health NGOs Project Staff
Stage in Project

Women MoH
Children Local Church
Water Sellers
Health Workers

Implementation Donor Women, Project Staff

and Monitoring Children
Water sellers
Local church
Health workers

Reviewing Donor Women,

Children
Water sellers
Local church
Health workers

Evaluation Donor MoH

Health NGOs
Community
 Exercise
• Complete a summary participation matrix for the dam project
• When the table is completed, think about how participation of stakeholders might
actually happen
• For example, if we think a women’s group should be consulted at the planning stage,
consider how this might be carried out
• We might decide to hold a special meeting
• It is important to consider our options so that we can ensure those who we think should
participate in the project respond to our invitation
• The community should select representative members
• Encourage them to ensure a good gender balance
• These members might then require training and discussion of their expected roles and
responsibilities in the project
• Identify the different stakeholders of the proposed dam by identifying primary and
secondary stakeholders
 Summary of Knowledge Areas
Knowledge Area Process

Integration Monitor Project Work

Scope Assess Scope Status
Time Schedule Monitoring
Cost Cost monitoring
Quality Assess quality
Human resource management Manage Project Team

Communication •Performance Reporting

•Manage Stakeholders
Risk Risk monitoring
Procurement Contract Administration Monitoring

stakeholders Identify and manage stakeholders

Thank you!!