Project Planning and Management: An Aspect of Development : An Aspect of Development [1 ed.] 9783954896349, 9783954891344

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Akampurira Abraham

Project Planning and Management

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An Aspect of Development

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Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

Abraham, Akampurira: Project Planning and Management. An Aspect of Development. Hamburg. Anchor Academic Publishing 2014 Buch-ISBN: 978-3-95489-134-4 PDF-eBook-ISBN: 978-3-95489-634-9 Druck/Herstellung: Anchor Academic Publishing, Hamburg, 2014 Bibliografische Information der Deutschen Nationalbibliothek: Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.d-nb.de abrufbar.

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Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten wären und daher von jedermann benutzt werden dürften. Die Informationen in diesem Werk wurden mit Sorgfalt erarbeitet. Dennoch können Fehler nicht vollständig ausgeschlossen werden und der Diplomica Verlag, die Autoren oder Übersetzer übernehmen keine juristische Verantwortung oder irgendeine Haftung für evtl. verbliebene fehlerhafte Angaben und deren Folgen. Alle Rechte vorbehalten © Anchor Academic Publishing, Imprint der Diplomica Verlag GmbH Hermannstal 119k, 22119 Hamburg http://www.diplomica-verlag.de, Hamburg 2014 Printed in Germany

Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

Table of Contents Chapter One.............................................................................................................................. 1 1. Introduction .......................................................................................................................... 1 1.1. What is a project? ............................................................................................................ 1 1.1.2. Project Life Cycle..................................................................................................... 1 Chapter Two ............................................................................................................................. 4 2. PROJECT PLANNING AND ANALYSIS ........................................................................ 4 2.1. Planning for Project Implementation .............................................................................. 4 2.2. Key issues of Planning for implementation .................................................................... 5 2.2.1. Project organization (structure) ................................................................................ 5 2.2.2. Project implementation plans ................................................................................... 5 2.2.3. Functions of planning ............................................................................................... 5 2.2.4. Areas of planning ..................................................................................................... 5 2.2.5. Role of the planner in the implementation activity .................................................. 6 2.2.6. Factors that affect plan implementation ................................................................... 6 2.2.7. Why planning is important ....................................................................................... 6 Chapter Three .......................................................................................................................... 7 3. PROJECT MANAGEMENT .............................................................................................. 7 3.1. Major goals in project management ................................................................................ 7 3.2. Types of management in the Project Cycle ..................................................................... 8 3.2.1 Integration management ............................................................................................ 8 3.2.2. Scope Management .................................................................................................. 8 3.2.3 Time management ..................................................................................................... 8 3.2.4. Cost management ..................................................................................................... 8 3.2.5. Quality Management ................................................................................................ 8 3.2.6. Project communication management ....................................................................... 8 3.2.7. Project Human resources management .................................................................... 9 3.2.8. Project risk management .......................................................................................... 9

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3.2.9. Project procurement management ............................................................................ 9 3.3. Logical Framework Matrix ........................................................................................... 10 3.3.1. Feasibility and Viability Analysis and Decision Making....................................... 12 3.3.2. Feasibility Study ..................................................................................................... 13 3.3.3. Feasibility Analysis and Appraisal Projects ........................................................... 15 3.3.4. Need Analysis ........................................................................................................ 16 3.3.5. Problem/ Need Analysis ......................................................................................... 18 3.3.6. Need and Needs Assessment .................................................................................. 20

Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

3.3.7. Capacity Assessment .............................................................................................. 22 3.3.8. TRADITIONAL PROJECT CYCLE AND NEW PROJECT CYCLE ................. 24 Chapter Four .......................................................................................................................... 36 4. MONITORING .................................................................................................................. 36 4.1. Monitoring indicators .................................................................................................... 37 Chapter Five ........................................................................................................................... 40 5. EVALUATION ................................................................................................................... 40 5.1. Importance of information gathering, analysis and application .................................... 40 5.2. Project Information System........................................................................................... 42 5.3. Information Users .......................................................................................................... 43 5.4. Kind of information needed for Monitoring and Evaluation ........................................ 44 5.5. How to ensure that the information is accurate and reliable ......................................... 45 5.6. How to ensure that the information is relevant to user needs ....................................... 45 5.7 How to ensure that information is available on time ..................................................... 46 Chapter Six ............................................................................................................................. 49 Winding up.............................................................................................................................. 49 6. Introduction ........................................................................................................................ 49 6.1. Data collection............................................................................................................... 49 6.2. Data analysis ................................................................................................................. 49 6.2.1. Analyzing data for Monitoring and Evaluation...................................................... 49 6.3. Report writing ............................................................................................................... 50

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References ............................................................................................................................... 52

Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

Copyright © 2013. Diplomica Verlag. All rights reserved. Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

Copyright © 2013. Diplomica Verlag. All rights reserved. Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

Chapter One 1. Introduction 1.1. What is a project? A project comprise a series of activities (investments) that aim at solving problems within a given time frame with a clear set of objectives for man’s benefit. It is an undertaking that involves the commitment of scarce resources in the expectation of future benefits. According to Heagney (2012: 2), a project should have a definite starting and end point (time), a budget (cost), or a certain magnitude of work and specific performance. Before achieving the objectives, a project goes through several stages of a project cycle. The Project life Cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives. Regardless of scope or complexity, any project goes through a series of stages during its life. The first stage is the birth phase or Identification. In this stage the outputs and critical success factors are defined. This is followed by a Planning phase, characterized by breaking down the project into smaller parts/tasks. In the Execution phase, the project plan is executed, and lastly a Closure or Exit phase, marks the completion of the project. The project cycle has seven stages, each stage links with the preceding one and leads forward to the next one. These include Identification, Preparation, Appraisal, Implementation, Monitoring and Evaluation and winding up.

1.1.2. Project Life Cycle

Identification

Winding up Preparation

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Evaluation

Monitoring

Appraisal

Implementation

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Identification: This involves the conceptualization of the project ideas. The ideas may be triggered by some need or demand that becomes obvious to an entrepreneur, organization or institution. Heldman (2011 : 2) says that projects are meant to produce a unique product or service that has not been produced before. It therefore requires innovativeness and creativeness.

Who identifies projects? •

Government ministries

•

Development government institution

•

Local government

•

AID agencies

•

Other NGO’s

•

Private sector companies

•

Politicians or other individuals.

Means of identification of projects •

Government development planning

•

Program developed by donors

•

Surveys by organizations

•

Reviews of part policy or projects

•

Private sector cooperate planning

Preparation (design): This phase of the cycle requires leaders and managers to research both the needs and the impact of the project. The design involves spelling out the objectives of the project. It is the planning stage and refers to the formulation and design of the project. It involves the detailed articulation of the project ideas into a project proposal. The initiation stages are sometimes referring to prefeasibility studies. This way then can be followed by

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feasibility studies and finally project proposal.

Appraisal: Appraisal gives stakeholders an opportunity to review the project design in detail and resolve any outstanding questions. The appraisal of the project is a critical and systematic review of all the aspects of the project with the aim of providing reliable information to proceed or not to proceed with the project (is it a good idea? Is it going to work?).

This

involves checking estimates of project’s costs of resource and the expected flow of benefits from the project along with possible financiers and beneficiaries. The appraisal report and revised project proposal may be used in soliciting funds for the project. Project appraisals 2

Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

critically examine the technical, financial, economic, social, institutional, environmental, legal “feasibility of the project”.

Implementation: This stage involves the carrying out of the most activities of the project. Most of the project funds are disbursed at this stage. Fixed assets are obtained and production or service delivery is undertaken at the implementation stage. As problems often occur in implementing projects, it is normally essential to monitor the implementation of the project. It involves the continuous assessment of the performance of the project to find out if it is working according to plan. Executing consists of the processes used to complete the work defined in the project management plan to accomplish the project’s requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan.

Monitoring. Monitoring is performed while a project is being implemented, with the aim of improving the project design and functioning. Regular observation to find out and follow up of the project implementation to find out if project is on track with respect to objectives, budget, time and other criteria. Monitoring helps to troubleshoot for antilogies cost over runs etc.

Evaluation. It may be midterm or end term evaluation. Evaluation involves systematic assessment of the performance of the project with respect to the goals and objectives set originally. The performance of the project in respect of financial budget, timeliness, benefits of cost projections and other aspects are examined and suggestions for any necessary adjustment improvements or control are made. Bamberger describes evaluation as “mainly used to help in selection and design of future projects. Evaluation studies can assess the extent to which the project produced the intended impacts (increase in income, better housing quality,

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etc.) and the distribution of the benefits between different groups , and can evaluate the cost effectiveness of the project as compared with other options.”

Winding up: The final project process phase is the wrap up process. In this phase of project process, the project comes to an end. The project manager is responsible here to for wrapping up the entire process.

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Chapter Two 2. PROJECT PLANNING AND ANALYSIS This refers to the design of the project and involves the gathering of relevant information through feasibility studies and market research and carrying out preliminary cost benefit analysis to find out if this project will be sufficiently beneficial to target group, owners or country at large. The output of the planning process will be the project proposal. Project analysis and planning are normally undertaken during the design and preparation stage and involve; •

Analysis of Market Proposals Analyses the demand for the projects output.

•

Analysis of technical feasibility Analyses technical feasibility in terms of inputs, technique, scale, engineering, machinery, treatment of waste and others.

•

Analysis of financial feasibility Analyses the financial viability by looking at projected outlay and receipts among others.

•

Analysis of Economic feasibility Analyses the benefits of the project to the nation, National resource, allocation and distributional effects.

•

Analysis of Ecological effects Analyses the environment through environmental impact assessment.

2.1. Planning for Project Implementation Planning is an arrangement for doing something which is considered in advance. It means determining what is to be done how, when and by whom. It lays down the objective of pursuit

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and a specific course of action to achieve it. Planning is deciding in advance what to do, how to do it and who is to do it. Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen.

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2.2. Key issues of Planning for implementation 2.2.1. Project organization (structure) Bureaucracy and other forms of traditional organizational structures are not suitable for projects management. A project call for different forms of organizations, sharper tools of planning & control and improved means of accommodating human resource. A project may take the following forms of organization: •

Line and staff organization (with a project coordinator who facilitates the coordination of line management in functional departments). This is suitable for small projects.

•

Divisional organization (where a separate division is set up to implement the project headed by a project manager suitable for big projects).

•

Matrix organization; where responsibility is shared between the project manager and line managers.

2.2.2. Project implementation plans Projects require formal plans. Plans are required for effective planning for smooth flow of the project cycle.

2.2.3. Functions of planning An implementation plan is a vital aspect of management and serves several important functions; •

It establishes a basis for monitoring and evaluation.

•

It provides a basis for organizing work in a project and allocating responsibilities.

•

It instills a sense of time consciousness.

•

It provides a means of coordination and control of a project

2.2.4. Areas of planning A project plan must incorporate the following: Copyright © 2013. Diplomica Verlag. All rights reserved.

•

Work plans (planning project work), the activities of the project must be properly scheduled and sequenced.

•

Planning the manpower and organization. Manpower for the project must be estimated (don’t under estimate or over estimate).

•

Planning for money (budgeting). Expenditure and income must be time phased and budgeted.

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•

Planning the information system, the information required for managing and monitoring the project must be defined.

2.2.5. Role of the planner in the implementation activity •

Monitoring, mobilizing, organizing and management of resources to ensure that they are incorporated in the planning activities.

•

Coordinate, assemble, control and manage resources to achieve what is required.

•

Analyses, determine and communicate to management, anticipated existing project needs.

2.2.6. Factors that affect plan implementation •

Timely availability of funds

•

Nature of the planning process

•

Proper implementation planning; (systematic, sequential).

•

Sound project organizational structure. ¾ The human resource (unskilled) ¾ Content of plan/adequate formulation

•

Management of the implementation process

Lewis, (2011: 189), emphasizes that failure to properly define the problem and establish vision and mission of the project will make the project fail to achieve the intended objectives.

2.2.7. Why planning is important •

Planning guides implementation of the project.

•

Motivates staff through proper resource planning and management.

•

Planning ensures smooth running of projects.

•

Planning helps to think a head and prepare for the future.

•

It ensures the right direction.

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• Identifies issues that need to be addressed •

Allocates resources and responsibilities

•

It helps stakeholders to choose between options.

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Chapter Three 3. PROJECT MANAGEMENT According to encyclopedia, project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. Project management is largely required during implementation stage of the project. Project management covers; integration management, scope management, time management, cost management, quality management, human resource management, communication management and procurement management. Project management requires that one apply their personal knowledge, skills, tools, and techniques towards an activity in order to meet the requirements of a project assigned. Project management involves planning, organizing, decision making, directing, coordinating, monitoring, scheduling and controlling of all the combined activities in order to ensure successful completion of the project objectives. Melton, T.(2008 : 6), stresses that a project is construed to mean an independent undertaking with a unique purpose and conditions to be managed by artificial structures or technical systems. It is effectively working to coordinate and manage individuals to work towards a common goal or objective to complete a task.

3.1. Major goals in project management •

Attainment of objectives.

•

Financial sustainability.

•

Maximizing the beneficial impact.

•

Efficiency of the project.

•

Social sustainability. According to Ian Dorton (1998: 198), the there are two main objectives of project

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management. These include; •

Finishing the project within the agreed

•

Finishing the project within the planned budget.

available time.

All the intended objectives are meant to increase efficiency reduces the costs of production, increase transparency, and achieve the best out of the available scarce resources.

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3.2. Types of management in the Project Cycle 3.2.1 Integration management Describes the process required to ensure that the various elements of the project are properly coordinated. It consists of the project plan development, plan execution and overall change control. The project integration ensures that the project is managed as a unit of related activities.

3.2.2. Scope Management The project scope is the definition of what the project is supposed to accomplish

and the

budget (time and money) that has been created to achieve these objectives. Describe the process required to ensure that the project activities include; All the work required to successfully complete the project and realize the objectives specified for the project. It involves the scope definition, scope planning, scope benefaction and scope change control. Grundy (2001: 26) emphasizes the need of scoping the project through identifying the key project objects for effective project management. This may be in form of identifying the size of the project, the stakeholders among other factors needed to bear in mind for effective project management.

3.2.3 Time management Relates to the management process required to ensure that the project is completely timely (in time). It involves the definition of the activities the estimation of the duration of the activities developing the schedule for the activities of the project and controlling that schedule.

3.2.4. Cost management Involves the process required to ensure that the project is completed within the stipulated budget. It consists of resource planning, cost estimating, cost budgeting and cost control.

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3.2.5. Quality Management Involves the management processes in ensuring that the project delivers outputs that meet the quality specifications set in order to satisfy stake holders. This consist quality planning, quality assurance and quality control.

3.2.6. Project communication management Includes processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information. It provides the initial links 8

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among people, ideas and information that are necessary for the files of the projects. It includes communication planning, information distribution, performance reporting and administrative closure processes.

3.2.7. Project Human resources management Includes processes required to make the most effective use of people involved with the project. It includes all the project stakeholders, the sponsors, staff, customers, individual contributors and others. David, N (1999:356), stresses that human resource management not only is important for human resource issues but also vital for total integration within corporate objectives of the enterprise. It involves organizational planning, staff acquisition and team development. Kendrick (2011:83) stresses that building a high performing team involves brainstorming planning and embarking in team building activities that helps to achieve good working relations and mutual trust. Team work helps to assist even the less skilled workers through mentoring and guidance that generally lead to increased labor productivity.

3.2.8. Project risk management It involves the process of identifying, analyzing and responding to project risk. It includes maximizing results of positive events. It includes risk identification, risk qualification, risk response development, risk response control etc. Kendrick (2009:2) shows that effective project risk management is needed to understand the challenges ahead so as to anticipate the possible risks. Past failures can be used to avoid future problems through planning for risk management.

3.2.9. Project procurement management Involves the processes required to acquire goods/service from outside the performing organization. It includes the processes of procurement planning, solicitation, source selection

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contract administration, contract close out etc.

A successful manager must effectively manage the resources assigned to the project. (Reh ,1997). This includes the labor hours of the designers, builders, the testers and the inspectors of the project team. It also includes managing any labor subcontracts. Managing the people resources means having the right people, with the right skills and proper tools, in the right quantity at the right time. It also means ensuring that they know what needs to be done, when and how. And it means motivating them to feel a sense of belonging while at work.

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Project management means effectively working to coordinate and manage individuals to work towards a common goal or objective to complete a task. The project management requires that one apply their personal knowledge, skills, tools, and techniques towards an activity in order to meet the requirements of a project assigned. Project management involves planning, scheduling, and controlling of all the combined activities in order to ensure a successful completion of the project objectives. There are three concepts that are part of any project no matter what type of project is being worked on. These three concepts include project processes, project life cycles, and project management systems.

3.3. Logical Framework Matrix This is usually a 4 x 4 matrix in which the first column summarize the activities, output, objectives and goals in a hierarchical order as delivered from the objectives analysis. •

Second column defines objectively verifiable indicator (OVI) required to be able to determine whether the objectives and goals are being attained.

•

Third column describes the practical steps involved in estimating or means of verifying (MOV) of the objectively verifiable indicators in column three.

•

The 4th Column represents all those factors assured given but not part of the project intervention, i.e. Assumptions. They are therefore external factors. If they not hold, then they constitute risks.

Objective

Perform indicators

Means of verification Assumption evidence

and

risk

Goal The

higher Measures to verify Source

of to

verify factors

external

order objective attainment of GOAL

needed

to which the

status of the goal for sustaining the

project

level indicators

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data Important

objectives

necessary

in

the

long-run.

Purpose The effect or Measures to verify Sources impact of the accomplishment project.

the purpose.

of needed

of to

data Important

external

verify factors needed to

status of the purpose attain the GOAL levels.

Output 10

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The

delivera- Measures to verify Sources

bles or terms accomplishment

of

data Important

external

of needed to verify the factors needed to

of reference of the outputs.

status of the outputs attain

the project.

level indicators.

the

PURPOSE.

Output The

main A summary of the Sources

activities must

that project budget. be

undertaken to

of

data Important

needed to verify the factors

external

that

must

status of the project prevail to accomACTIVITIES.

plish the OUTPUTS

accomplish the OUTPUTS

What is a logical frame work? This is a tool used to strengthen project design, implementation and evaluation. Although it is constructed during the prime stage of the project, the logical framework is a living document that should be constructed and altered throughout the project’s life cycle. The logical framework has four columns where all the key parts of the project can be inserted as a clear set of statements. The project goal, purpose output and activities with their indicators, evidence and assumptions shows the project structure and describes the project logically.

The logical framework doesn’t show every detail of the project. It is an overview of the key factors; details can be given on other document such as the proposal, the budget and activity schedule that accompany the log frame.

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Why use a logical frame work? •

To help to think logically.

•

To help people organize their thinking.

•

To help identify weakness in the project design.

•

To ensure key indicators are identified from the start of the project so that monitoring and evaluation become easy.

•

It summarizes a project plan on a piece of paper.

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How a log frame works. The long frame asks a series of the following questions:•

Where do you want to be? (goal & purposes)

•

How shall we get there? (this is by looking at results and activities)

•

How shall we know when we have got there? (Indicators).

•

What will show us we have got there? (evidence)

3.3.1. Feasibility and Viability Analysis and Decision Making. While an opportunity study is undertaken to develop an entrepreneurial interest, the prefeasibility study has to take into consideration such aspects as to when the entrepreneurs’ response is forth coming.

Rationale of Pre-feasibility Study and objectives of the study Undertaking of feasibility study is costly, skilful and time consuming task, therefore before committing and assigning funds for such study a preliminary assessment of the study idea should be carried out i.e. a pre-feasibility study should be carried out

A pre-feasibility study can be viewed as a series of steps originating from a document which permits determination of whether/not complete detailed feasibility study should be made. The objectives of the study include:•

Whether the project concept justifies a detailed analysis by a feasibility study.

•

Whether the project is promising and an investment decision can be taken from the basis of the information furnished at the pre-feasibility stage.

•

Whether information is adequate to decide that the project idea is lucrative.

•

Whether any aspects of the projects are critical to its pre-feasibility and necessities indepth investigation through functional/support studies such as, market surveys, pilot plant tests, laboratories etc.

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All this will enable the project to gain in terms of knowledge and confidence by focusing on the special characteristics of the project to construct a detailed study plan.

Checklists for preparation of Pre-feasibility Study It is necessary at the pre-feasibility stage to examine broadly the following:•

Market and plant capacity: Here you consider the present size of demand of your products and also look at the growth of market of your products in the area of coverage, competition.

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Also the plant capacity is determined in order to avoid over production or excess production. •

Material inputs. These may involve source of raw materials for manufactured products.

•

Location This concerns the location of the project engineering. Here technology to use and type of equipments to use in the project thought of are considered for example appropriate technology –when using local technology.

•

Organization and over heads. Taking note of the organizational structure, organizational layout in respect to production e.g. Sales and marketing, administration and management etc.

•

Man power Stating whether the project will be labor intensive or capital intensive, mentioning of staff and skills required is very important.

•

Project implementation Here the detailed implementation schedule is indicated showing the whole project implementation program.

•

Financial and Economic evaluation Here the whole project activity and costs such as fixed costs are evaluate.

3.3.2. Feasibility Study A feasibility study is a preliminary study undertaken to determine and document the project’s viability. The results of this study are used to make a decision whether to proceed with the project or not. Dinsmore (2011 : 369) stresses that project management is dynamic and therefore responds to changes in the environment for instance technological, cultural and sociological changes. This situation calls for a feasibility study to ascertain the viability of the project.

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It is an analysis of possible alternative solutions to a problem and a recommendation of the best alternative. A feasibility study could be used to test the proposal for the new system which could be used because:•

The current system may no longer carry its purpose.

•

Technological advance may have rendered the current system obsolete.

•

Customers are complaining about the speed of quality of work a business provides.

•

The business is expanding allowing it to cop with extra work load.

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•

Competition is now winning a big market share due to ineffective intervention of computerized system.

Advantages of making feasibility study There are many advantages of carrying out feasibility study, some of which are summarized below:•

Provide a thorough examination of all issues and assessment of probability of business success.

•

It helps to increase investment in the company.

•

Avails new opportunities through the investigative process.

•

Identify reasons to or not proceed.

•

Enhance the probability of success by addressing and mitigating factors early that could affect the project.

•

Provides documentation that the business venture was thoroughly investigated.

•

Gives focus to the project and other alternatives.

•

Provides quality information for decision making.

•

Helps in securing funding from lending institutions and other monetary sources.

•

Helps in planning for risk analysis.

•

Feasibility study helps in making plans for training developers for implementing the system.

•

Helps in making cost/benefit analysis which helps the organization of the system to run effectively and effectively.

Therefore a feasibility study is a report which could be used by the senior or top persons in the organization. This is based on the report the organization decides about cost estimation, funding and other important decisions which is very essential for organization to run profita-

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bly and for the system to run smoothly.

Steps in conducting feasibility study. •

The main objective of the feasibility study is to determine whether a certain plan of action is feasible; whether or not it will work and whether or not is worth doing economically. Although the core of study is indicated to showing the outcome of specific actions, it should begin in evaluation of the entire operation. e.g. a good feasibility study

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would review the company strength and weaknesses, its position in the market place and its financial situation. It would also include information of a company’s major competitors, customers and any relevant industry trend. Feasibility study is done in order to predict the results of a specific future course of action. Feasibility study will help you accurately anticipate what will not work in valid situations. A feasibility study can also lead new ideas for strategic changes. •

The second part of a good feasibility study should focus on proposed plan of action and provide detailed estimate of its cost and benefits. In some cases, a feasibility study may lead the management of the company to achieve the same benefits through earlier and cheaper means e.g. It may be possible to improve the manual filing system rather than purchase and expensive new computerized data base. If the proposed project is determined to be both feasible and desirable, the information provided in the feasibility study can be used to develop a strategic plan for the project translating general ideas into measurable goods.

•

In most cases feasibility study should be performed by qualified consultants in order to ensure its accuracy and objectivity. To be able to provide a meaningful analysis of the data, the consultant should have expertise in the industry. It is also important for a small business to assign an internal person to help gather information for the feasibility study. The small business owner must be sure that those conducting the study have full access to the company and the specific information they need.

3.3.3. Feasibility Analysis and Appraisal Projects Feasibility studies determine if the project can be implemented according to the standards and criteria forth in the preliminary design. Within a feasibility study, the following areas must be

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reviewed:•

Needs analysis

•

Technical feasibility study – manpower and technical requirements.

•

Schedule feasibility study

•

Cultural feasibility study

•

Legal feasibility study

•

Marketing feasibility study

•

Economic feasibility study (cost of benefits)

•

Administrative feasibility study (internal organization / external linkages)

•

Social/political feasibility (demographic data and social needs)

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•

Financial feasibility (for funding needs and sources).

•

Environmental feasibility

These will answer the following interrelated questions. •

Is the proposed project responsive to urgent present or anticipated social and economic needs?

•

Will the project as planned adequately serve/fulfill the intended purpose without harming the environment?

•

Will the benefits of the project to both society and the economy be justified by the costs?

•

Should various technical alternatives be studied to optimize the cost effectiveness of the project without sacrificing its quality?

•

Do the feasibility studies provide sufficient baseline interior and measures to establish a checklist for subsequent project implementation and evaluation?

3.3.4. Need Analysis A need analysis should be the first undertaking of a feasibility study as it clearly defines the project outline and the clients’ requirements. Once these questions have been answered, the person undertaking the feasibility study will have outlined the project needs definition. The need analysis therefore caters for the stakeholders interests. Richman (2012: 18) regard stakeholders as individuals and organizations who have interest in the project and these include those who benefit from the project, those who contribute to the project and those who are impacted by the project. To do proper need analysis, it is important to identify all the stakeholders.

Technical feasibility This is the foundation of all other feasibility study or reports. It establishes further design

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inferior conducts in engineering studies to determine physical and technological alternatives and meet budgetary and social, political requirements, outline the forms that activation and implementation will take and estimates the scheduling inputs and outputs satisfy both immediate and development goals. What are the costs of constructing public facilities? Is there any adequate choice of available technologies for alternative design purposes, considering the physical layout and availability of raw materials. 16

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Schedule feasibility This involves questions such as how much time available to yield a new system whether it interferes with normal business operation.

Cultural feasibility In this stage the projects alternatives are evaluated for their impact on the local and general culture e.g. environmental factors will be considered.

Legal feasibility All projects must face legal scrutiny when an organization either has legal council on staff on retain; such reviews are typically standard, however any project may face legal issues after competition too. It is interrelated to the organizational strategy.

Marketing feasibility This will include analysis of single dimensional market forces that will effect commercial policy along with a company activity that is carried out. The feasibility achieving were and more reputation as they have carried out safety tickets which allows the systems to run appropriately.

Economic feasibility This establishes the cost effectiveness of the proposal system i.e. If the benefit do not outweigh the cost then it is not worth going ahead.

Administrative feasibility This evaluates the strategy of the implementing agency in carrying out project activities. The analysis will provide information and guidelines that can be used to improve overall project

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administration. The study examines the following separate components:•

Internal organization

•

Personnel

•

Management

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Social and political feasibility The social political study attempt to answer the following questions; •

What are the project likely impacts?

•

What is the project political impact?

•

What social factors in the project environment that will hinder or aid the project in achieving its goal?

•

What political issues will hinder the project in achieving the goal?

The social –political study attempts to answer the following questions. •

What is the project’s likely social impact?

•

What is the project’s likely impact?

•

What social factors in the projects environment will hinder or aid the project in achieving its goals?

Financial feasibility The financial study addresses the following questions •

What are capital and operating costs of the project?

•

What are the sources of funds, and are they sufficient to cover the cost of activities and implementation?

•

What are other alternative financing schemes from other funding sources?

•

What is the projected income of the project?

Environmental feasibility (i)

Is the environment suitable for the success of the project?

(ii) What will be the projects impact on the environmental? Environmental study adds an extra dimension to the technical study by ensuring that the technical analysis includes

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two important dimensions. (a)

The projects present environmental needs

(b)

Its long term environmental needs. Environmental suitability involves the determining whether on not the ecosystems of a region can support a project over along time.

3.3.5. Problem/ Need Analysis Heldman (2011: 4) stresses that projects come out as a result of need and that need relates to the customer’s expectations. Therefore, to solve a community’s problem all stakeholders must 18

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work together to identify the real problem. It involves working the same group involved in the .

needs assessment exercise. They review the statement of the problem and causes and see if the statement is clear enough and if the real causes were found. This will help members to look for the best solution of the problem. It is this problem that will generate the project to undertake to solve people’s problems.

Hunger

Poverty

Laziness

Poor Soils

Unemployment

Over cultivation

Population Pressure

Attitude and cultural influence.

Shortage of land

Poor methods

Poor family

of faming

food shortage

High fertility

Planning

Rate

etc. Early

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Marriages

The following questions need to be asked to define the project needs definitions. •

Will the end be desirable?

•

What purpose will it serve?

•

What are the environmental effects?

•

What are the rules and regulations?

•

What are the quality requirements?

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•

What sustainability can we expect?

•

How much do we need to out source?

•

How much do we have in source?

3.3.6. Need and Needs Assessment A need is defined as a gap between what is and what might be whether economically, socially, spiritually etc. Needs refer to human wants or desires which include things like services, goods etc that people desire.

Needs This focuses to what people require to have, fulfilling living. People have needs and different needs become important to them. The need will generate a drive to fulfill that need. Behavior will be directed to fulfilling that need and eventually gets satisfied with it. Once it is satisfied, them another need arises.

Types of needs Maslow’s hierarchy of needs. Theory comprises of needs whose basic proportions are:•

People are “wanting beings.”

•

People always want more and what they want depends on what they already have.

•

Human needs or wants are arranged in a series of levels i.e. in a hierarchy of importance.

Maslow’s Hierarchy of needs

Self actualization

Self esteem (ego)

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Social Affiliations

Safety

Physiological •

Physiological needs: These are comprised of basic needs. They are basic human needs to sustain life its self e.g. Food, shelter, medical care etc.

20

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•

Security/safety needs: They include safety, sanity and freedom from pain or threat of physical attack, protection from danger or deprivation of basic human needs.

•

Social/love needs: These include affection, sense of belonging, social activities, friendships and both receiving and giving love, the need to belong or to be accepted by various groups of people.

•

Esteem/Ego need: These include self respect and esteem of others. Self respect involves the desire for confidence, strength, independence, freedom and achievement. Esteem of others involves reputation or prestige, status, recognition and appreciation.

•

Self actualization needs: These constitute the development and realization of ones full potential. Maslow sees them as what a person can be what he must be or becoming everything that he/she is capable of becoming.

Maslow further explains that:•

Once a lower need has been satisfied, it no longer acts as a strong motivation.

•

The needs of the next higher level in the demand satisfaction come up and become the motivating influence.

•

Only unsatisfied needs motivate a person to do something to satisfy them.

•

A satisfying need is no longer a motivation

Needs assessment This refers to the initial starting phase of the purposeful formal and intensive activities which form a research once they carried out in an interrelated and coordinated sequence or process whose end results are utilized for development.

Needs assessment is therefore a survey involving collection of data, analyzing it with an aim of identifying development obstacles which could be overcome by the design and implementation of the project.

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It is important to carry out needs assessment before planning development, whether we think we know what the needs are or not. The project should come out with what people say they want and not from the assumptions that we make. Sometimes the needs are not immediately clear or cannot be easily understood e.g. Poor access to clean water may affect women more than men because women have to walk far away to fetch water. Circumstances change, there will be new people in the community, there would be new needs, old needs might have been addressed and problems might be affecting people differently.

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Needs assessment gives people an opportunity to prioritize the needs which lead to a more sustainable project.

3.3.7. Capacity Assessment Communities should be arranged to use their own capacities and resources to address the problems they face. It is therefore important to carry out capacity assessment after needs assessment to identify the strength that the community might use to address the problems they identified earlier. Capacity involves 6 types of assets •

Human: This comprises of the skills of the people, their health, energy etc.

•

Physical Asset: These may involve buildings, transport, energy sources and telecommunications.

•

Economic assets, these can be in terms of money and savings, tools and equipments.

•

Social aspect: Socially, how is the community? Are they hostile, are they good, do they work?

•

Natural assets, which may involve the environment e.g. Land, minerals, trees, water etc.

•

Spiritual: Team spirit.

What is involved in needs assessment Problem Identification: A problem is assumed to exit when a given society or individual has departed from or is failing to realize what is expected to be correct or necessary in the light of existing norms, laws, values etc at a given time. It usually ends into a negative contribution, social or economic status of the victim. Problems can be of social or economic or other circumstances such as epidemics, droughts, floods that deter or limit them from living a good life. •

Problem articulation

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There is need for further focus to critically assess the causes, the nature and estimating the consequences a project has on a society (environmental and social impacts). •

Problem justification and legitimacy Here, you ask one question like; Is there need to commit more resources and continue with idea in light of the reliable resources and expected contributions or benefits? If the project is likely to address a problem then the investor or planner is convinced at this level and make the project legitimate by formalizing it.

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Formalizing includes more consultancies with relevant bodies, borrowing more ideas and polishing up investigation of the problem. •

Setting objectives General and specific objectives as well as determining a project mission and purpose.

•

Determining of strength, weaknesses, opportunities and threats. Here, you consider things such as manpower, local support, local materials, technology and likely funding, social and physical infrastructure.

Approaches and methods of carrying out needs assessment Both informal and formal methods are applied in survey when gathering information. Needs assessment survey is a complete search of more often not an individual undertaking. It is expensive as well as an intensive activity. It requires a lot of resources inform of equipment, expertise, finance and time. While undertaking as needs assessment survey, it is important to exploit both primary and secondary sources of data so as to make a meaningful conclusion.

Implication of needs assessment in the planning process •

Resource allocation We have very many needs and limited resources, thus you must learn to determine priorities along the yardsticks of urgency and importance in relation to community needs.

•

Combination of development ideas by various agencies in the field: this reduces duplication of services and unnecessary competition and wastage of resources.

•

Pre-requisites of cost effectiveness and organizational efficiency, low cost, maximum output leading to welfare provision and development.

•

Morale of the planning agencies, leaders, managers, committees while participating in the

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planning through meetings and report writings.

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3.3.8. TRADITIONAL PROJECT CYCLE AND NEW PROJECT CYCLE

TRADITIONAL PROJECT CYCLE

Project identification

Follow up

preparation to design

Evaluation

Appraisal

Monitoring and suspension

Selection negotiation and Approval

Operation

Implementation

WORLD BANK /NEW PROJECT CYCLE

Listening

Main streaming Piloting

Demonstration

A new project cycle is involving and is better adapted to the increasing risky volatile and participatory frame works of project planning and management.

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Today, in developing countries, the traditional development approaches no longer apply because:-

1. Planned economies are being replaced by market oriented economies. 2. Centralized decision making and resource allocation are being integrated with decentralized and local participatory initiatives. 3. In poor countries, there is still a need to focus on a fundamental element of development economics and these are capacity building, poverty eradication, environmental and natural 24

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resource management, investment in demand driven products, private sector development to stimulate business process, sustainability of production. 4. The project traditional cycle with its stages from identification is no longer adapted to participatory risk, volatile framework of today’s growing development business.

Causes of poor project performance in the recent past •

Poor involvement of the beneficiaries: Beneficiaries do not participate sufficiently. Participation has often been equated to receiving explanations from the project key stakeholders. Individuals and groups who stand to gain or loose from the project are not involved in decision making processes. Dinsmore (2011:369) puts it that involving the community is a way of organizing project personnel that improves knowledge management and transfer as well as providing the satisfaction of social learning and rewarding professional relationships.

•

Risks are inadequately assessed and managed. Because people are not happy with the project.

•

Capacity building has been pursued through separate technical assistance instead of being a core objective that permits objectives.

•

Project designs are not adjusted to changing conditions in a timely way.

Four stages of a new project cycle •

Listening phase Listening emphasizes a control role of the beneficiaries/borrower and the participation of potential beneficiaries right from the start. The listening phase is an open ended, but systematic inquiry into the views and concerns of all significant stakeholders. When all participants listen, they learn from one another and use the information to clarify goals and to gather relevant experience and insights. Listening brings demand side of the equation into the picture so that the project is not supply driven.

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Listening may also bring in wide diversions of project goals including catering for the very poor who otherwise may not have featured under traditional project approaches. •

Piloting phase Pilot projects are small and geared to explain alternatives identified at the learning phase and objectively assessing risks. They can be funded without elaborate review process thus reducing the time needed to start project activities.

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Pilot projects test local leadership and provide information about its development tasks expected to be replaced at a later stage. It allows contrasting project management styles, alternative technologies and sequencing of investments to be tried without incurring major transaction costs or risks. It allows participatory techniques along with social, physical, cultural, ecological and institutional aspects of the project. It requires detailed knowledge of local conditions and permanent presence on the ground. •

Demonstration phases This confirms the hypothesis identified at the pilot phase/trials whether risks are manageable or whether the project has satisfactory development impact. It enables planners to set up management information systems and estimate cost recovery arrangements. Physical benefits reinforce ownership and chances being replicated on a large scale and provide experience for the main project. At this stage, information is always available and filed. The project is seen to have been in existence. It provides chances for the stake holders to prove that the project can either expand or continue.

•

Main streaming phase This is transforming a demonstration program into self sustaining national program. The leadership skills and organizational program need to be strengthened. Special measures may be needed to strengthen accountability and transparency. To have a lasting impact there is a need to nurture commitment of major stake holders and ensure conditions adapting to changing circumstances. Here the project is in the minds of everybody in terms of funds and participants, there is a lot of awareness by all stakeholders i.e. donors, beneficiaries etc. To achieve the desired

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position a lot of control is needed. Richman (2012 :18) identifies some these tools like approved baseline plan, current status information, completion estimates, current and future variances with impact assessment, alternative solutions with evaluation and recommendations and approval from a change control board.

Financial analysis of projects In assessing the financial viability of projects, it is important to look at the project from various perspectives. These include both traditional but also more project specific financial 26

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analysis tools. Examples of traditional analytical tools include income statements, balance sheets, cash flow statements and financial ratios. The following are undiscounted methods used to determine the assessment of the project worth •

Pay back period.

•

Rate of return on equity.

Time value of money The value of money is dependent on when it becomes available. Generally money is preferred now to distant future because of the following reasons; •

Money available now could be put in a bank deposit account and earn interest and earn interest.

•

Money now could be invested in a commercial business to generate profits and so grow to a large sum.

•

Most people want to spend money now rather than differ the satisfaction they could get from spending the money.

•

People may be in extreme need now

•

Most people expect to be better off in the future. This is normally the nature of human beings.

•

Inflation could erode the value of money.

Compounding and Discounting Compounding and discounting are based on the reasoning that a given amount of money either invested in a business or deposited in a saving account is likely to grow into a larger

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sum due to earned income or interest. Thus an amount, At in t years.

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Mathematically, A1=A0+A0R A1 =A0 (1+R) A2 = A0+A0R + (A0+A0.R).R A2 = A0 (1+R)2 Similarly, At = A0 (1+R) t Re arranging the equation, A0 =At (1+ R)t

To get a better assessment of the value of resource flows over the entire life time of the project, it is more accurate to incorporate the aspect of time value of a resource. To achieve this, project analysis employs the above techniques of accounting and discounting. The following techniques are used; a- Net Present Value (NPV) b- Benefit to Cost Ratio(B/C) c- Internal Rate of Return (IRR)

Benefits and costs. Before, it is possible to determine the worth of the project. It is important to determine the benefits and costs of the project. A benefit is anything that contributes to the objective of the project. On the other hand a cost is anything that reduces the objective of the project. Two categories of costs may be identified namely cost of investment and operating costs. These

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costs may be identified as: •

Cost of land

•

Buildings and structures.

•

Cost of capital

•

Loan repayment

•

Personnel

•

Material inputs

•

Energy and fuel ¾ Tax

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After the benefits and costs have been identified, they need to be priced. In the financial analysis, the prices may be market prices but in the case of economic analysis, prices based on the value of the item to the society are imputed.

The Investment Decision This is taken basing on the following methods; •

Pay back period (PBP)

•

Return on investment (ROI) or accounting or rate of return (ARR) or return or capital employed (ROCE)

•

Discounted cash flow (DCF)

•

Not present value (NPV)

•

Internal rate of return (IRR).

Pay Back Period (PBP) It is the time taken in years for a project to recover its investments. The shorter the pay back period, the more viable the investment.

Advantages of PBP •

Simple and quick to calculate

•

It is easily understood by management since some mangers are not mathematicians.

•

It gives a measure of risk, cash flow that are not so further in future will be less certain, therefore projects with a short pay back period will generally be less risk.

•

It is of a particular advantage to small companies which may not have people with greater skills and techniques.

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Disadvantage of PBP •

It doesn’t consider all the cash flows

•

It just stops when the pay back period stops.

•

It doesn’t show the level of profitability

•

Time value of money is not considered e.g. Inflation.

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Example Association has a project X with a cash outlay of $800 dollars with a discount rate of 10% for a period of 8 years:

Year

Project (X) INCOME($)

0

(800)

1

150

2

200

3

300

4

150

5

150

6

150

7

100

Required Calculate pay back period When calculating pay back period 2 methods are used:1. Accumulative method 2. Reduction method

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Using reduction method for project (x) Year

Income ($)

Recovery of initial cost

0

(800)

800

1

150

650

2

200

450

3

300

150

4

150

0

5

150

6

150

7

100

The $800 injected in the project will be recovered in 4 years. This implies that Pay Back Period is 4 years

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Using accumulative method Year

Income ($)

Recovery of initial cost

0

(800)

(800)

1

150

150

2

200

350

3

300

650

4

150

800

5

150

6

150

7

100

Pay Back Period is 4 years

Evaluation Project’s Alternative with consideration of Time Value for Money. (Net present value) NPV The NPV approach applies to a specific discount rate to the cash flows of the project to arrive at an absolute measure, the NPV which is positive is implies the project is acceptable and which is negative implies the project is not acceptable. Emphasis here is laid on the time value of money as away to put weights on costs and benefits that are received sometime in future. These weights can be determined using the procedure of compounding & discounting.

Compounding is the procedure of determining how much the investment can be worth sometime in the future. This value can be calculated because interest payments are made at regular interests.

NPV =  (Bt-Ct) (1+R) t

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Bt =Benefits in year t Ct =costs in year t R= Discount Rate.

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DECISION CRITERIA For a positive NPV,(NPV>0), Implies that the project is viable; discounted benefits exceed the discounted costs. The larger the NPV, the better as the NPV represents the surplus benefit of the project. For a negative NPV, (NPV0, it implies that this is a viable project.

NB: when calculating for NPV, the weights can be determined using the procedure for compounding and compounding.

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Compounding is a procedure for determining, how much the investment can be worth sometime in the future. This value can be calculated because interest payments are made at regular intervals.

Importance of carrying out a feasibility study •

Helps to predict the results of a specific future course of action.

•

Helps to accurately anticipate what will not work in valid situations.

•

It leads to identification of new ideas for strategic change.

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•

Helps/provides detailed estimate of cost and benefits of the proposed plan of action a project may want to go through or undertake.

•

Information provided in the feasibility study can be used to develop a strategic plan for the project translating general ideas into measurable goals.

Perspectives in project analysis Since a project can have various stakeholders, they may be analyzed from the perspectives of various stake holders, for example: •

Financial analysis from the point of view of owners and financiers of the project.

•

Economic analysis from the point of view of national economy.

•

Distribution analysis from the point of view of relevant stakeholders.

Main perspectives Economic Analysis of projects Economic analysis is a method of assessing contribution of a project to the real income of the national economy. It is carried out from the national economy perspective. Justification for Economic Analysis •

Externalities ; many projects have external effects that are not captured in the transaction between the project owners and customers / clients in the conventional market.

•

Market imperfections which distort the real value of resources committed in the project to the economy.

•

To find out the most efficient use to which national resources could be reckoning in terms of the opportunity cost of the resources to the nation.

Risk analysis and sensitivity analysis A risk is the possibility of incurring a loss in an investment due to errors in estimates, dam-

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age, delays, poor management and other factors. Risk analysis involves an assessment of the nature of risks facing the project, the magnitude of their impact and the possibility of occurrence. Risk analysis also involves the proposition of possible ways and means of preventing the risk from happening or of mitigating its negative effects.

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Types of risks •

Project risk; earnings estimates may be lower than the expected due to estimation error or project specific factors like poor management.

•

Competitive risk; earnings and cash flows may be affected by the unexpected actions of competitors.

•

Industry specific risk.; unexpected technological or regulatory changes specific to a given industry can have an impact on earnings or cash flow of the project

•

Market risk; unanticipated changes in market and macro-economic conditions like interest rate, inflation. GDP growth and others.

•

International risk; changes in international conditions due to factors such as exchange rate, political relations and others.

Measures of project Risks •

Measures of risks aim at evaluating the impact of risky changes on the viability of the project.

•

Attempts to express the risk by relating the probability of occurrence to the NPV associated with the specific risk.

Sensitivity Analysis Is concerned with a “what if” analysis aimed at finding out the impact of changes in the key variables of the project on the project’s viability. Factors of interest may include such variables as cost of the project’s inputs, price of the project’s outputs, interest rate changes, inflation, delays, management short comings and other factors.

Reasons for carrying out sensitivity analysis •

To test the effect of unexpected fluctuations in key project variables such as input costs, output prices, interest rates, and technological and organizational changes on the viability

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of the project. Sensitivity analysis is used to explore whether the project will still be viable in the event of given changes. •

The ENPV and EIRR are computed on the basis of projections (and not actual data) of the most likely values of project input and output variables.

•

It is possible for the estimates of future trends in the key variables to fluctuate and in so doing affect indicators of the project’s viability.

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Chapter Four 4. MONITORING Monitoring is the continuous assessment of the project implementation in relation to agreed schedules and of use of inputs, infrastructure, and services by the project beneficiaries. It is the periodic review of the projects’ input activities and outputs undertaken during the implementation exercise. It is the activity of measuring progress of the project and it is a conscious exercise right from the start up to the end. Monitoring provides managers and other stakeholders with continuous feed back on implementation. It identifies actual or potential successes and problems as early as possible to facilitate timely adjustments to project operation. It involves data collection about what actually happens during the implementation process. This aims at finding out how the inputs of the project are being used. How activities and essential implementation process and other relevant requirements are being met. In short, monitoring finds out whether or not things are working out as originally planned for on the paper. It generally finds out whether the plans which were put on a paper are working out properly on the ground. Project monitoring is fundamentally concerned with measuring quantities, relating to resources planned for and at the same time looking at time factor. It is a continuous activity and should provide information that allows the planner to identify possible changes required in the frequent stages of the project implementation process. It is therefore a mechanism of collecting deviations that may have come up especially between what was intended to be done and what has actually been done on the ground. Monitoring should take place and integrated into all stages of the project cycle.

The three basic stages include: Project planning (situation analysis, problem identification, definition of the goal, formulating strategies, designing a work plan, and budgeting); ƒ

Project implementation (mobilization, utilization and control of resources and project

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operation); and ƒ

Project evaluation.

Monitoring should be executed by all individuals and institutions which have an interest (stake holders) in the project. To efficiently implement a project, the people planning and implementing it should plan for all the interrelated stages from the beginning.

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Evaluation is the periodic assessment of a project's relevance, performance, efficiency, and impact (both expected and unexpected) in relation to stated objectives: Project managers undertake interim evaluations during implementation as a first review of progress, a prognosis of a project's likely effects, and as a way to identify necessary adjustments in project design. Terminal evaluations, conducted at the end of a project, are required for project completion reports. They include an assessment of a project's effects and their potential sustainability. The implementers and planners have to agree on monitoring indicators. Monitoring indicators are quantitative and qualitative signs (criteria) for measuring or assessing the achievement of project activities and objectives. The indicators will show the extent to which the objectives of every activity have been achieved. Monitoring indicators should be explicit, pertinent and objectively verifiable.

4.1. Monitoring indicators These are of four types. They include; •

Input indicators: describe what goes on in the project (e.g. number of bricks brought on site and amount of money spent).

•

Output indicators: describe the project activity (e.g. number of classrooms built).

•

Outcome indicators: describe the product of the activity (e.g. number of pupils attending the school).

•

Impact indicators: measure change in conditions of the community (e.g. reduced illiteracy in the community.

Monitoring and Evaluation are important tools in project management given the following facts. Evaluation and monitoring systems can be an effective tool in project management to: Provide constant feedback on the extent to which the projects are achieving their goals. This promotes accountability. Identify potential problems at an early stage and propose possible solutions. This makes monitoring and evaluation a continuous activity for remedial and improvement action.

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Monitor the accessibility of the project to all sectors of the target population. Monitoring as a continuous process aims primarily to provide project management and give the main stakeholders early indications of progress or lack of progress towards achieving the project objectives. A progress analysis during project implementation through monitoring serves to validate the initial assessment of relevance, effectiveness and efficiency to fill the gaps. It may also detect early signs of the project’s success or failure. Monitoring assists project managers and implementation agencies to address any impediments to progress and make adjustments so that results can be achieved within the designated timeframe.

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Monitor the efficiency with which the different components of the project are being implemented and suggest improvements. Monitoring is an internal process that looks processes (both programmatic and financial) and makes changes in assumptions and risks associated with target groups, institutions or the surrounding environment. Monitoring evaluates the extent to which the project is able to achieve its general objectives. To make information on progress available right from the early stages of implementation and throughout the project cycle, indicators need to be structured. The log frame approach to project design provides an efficient structure by postulating a hierarchy of objectives for which indicators are required. Input indicators are quantified and time bound statements of resources to be provided. Information on these indicators comes largely from accounting and management records which are done by monitoring and evaluation. It provides guidelines for the planning of future projects. Need for effective monitoring and evaluation is increasingly recognized as an indispensable tool of project management. The acknowledged need to improve the of development assistance calls for close attention to the provision of management information, both to support the implementation of projects and programs and to feed back into design of new initiatives. It Influences sector assistance strategy. Relevant analysis from project and policy evaluation can highlight the outcomes of previous interventions, and the strengths and weaknesses of their implementation. Monitoring improves project design. Use of project design tools such as log frame results in systematic selection of indicators for monitoring project performance. The process of selecting indicators for monitoring is a test of the soundness of project objectives and can lead to improvements in project design. Monitoring incorporates views of stakeholders. Awareness is growing that participation by project beneficiaries in design and implementation brings greater “ownership” of the project objectives and encourages the sustainability of project benefits. Ownership brings accountability. Objectives should be set and indicators selected in consultation with stakeholders, so

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that objectives and targets are jointly “owned”. The emergence of recorded benefits early on helps reinforce ownership, and early warning of emerging problems allows action to be taken before costs rise. Monitoring activities should appear on the work plan and should involve all stake holders. If activities are not going on well, arrangements should be made to identify the problem so that they can be corrected. It shows need for mid-course corrections. A reliable flow of information during implementation enables managers to keep track of progress and adjust operations to take account of experience. 38

Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

Monitoring is important at the implementation phase to ensure that the project is implemented as per the schedule. This is a continuous process that should be put in place before project implementation starts. Monitoring is also important to ensure that activities are implemented as planned. This helps the implementers to measure how well they are achieving their targets. This is based on the understanding that the process through which a project is implemented has a lot of effect on its use, operation and maintenance. Monitoring and evaluation is a review system that contains key elements, providing further control or collective actions that provide; Immediate ‘post-mortem’ on the activities.

•

Immediate remedial and improvement action.

•

Long term audit and review.

•

Strategic and procedural changes.

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•

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Chapter Five 5. EVALUATION Evaluation is an appraisal of the projects’ performance undertaken. During the implementation exercise, evaluation can as well be done alongside monitoring. At this time, evaluation is trying to measure whether the project has had some effects on the target group. It may be done after every phase or stage of project implementation. Evaluation may also be done after the project has phased out; this exercise is referred to as Ex-post Evaluation. This is carried out purposely to find out whether the project goals were achieved or not.

Various groups of actors may be directly interested in the evaluation exercise, these include the donor agencies who may want to know if any conditions attached to the donation are being fulfilled and whether the project is performing as expected as per the financial terms earlier stated in the project proposal.

The government may also be interested in the evaluation exercise especially if it is directly involved in the activities of the project. The management of the project in question is also part and parcel of the evaluation exercise because they want to have an overview of the project implementation progress and its input on the ground.

5.1. Importance of information gathering, analysis and application Information gathering is now other than research carried out in the community where the project is being implemented properly for action to take place. The following are therefore the key issues, tracked while trying to find out the significance of

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the above phenomenon. •

Achievement The stakeholders of the project are very much interested in knowing what has been achieved thus they are trying to find whether the project has had some effect on the ground. United Nations Report (2011 : 17) emphasizes the process of building relationships through frequent meetings and communication with all potential stakeholders and participants to make them acquainted to the project norms and growth. In this way they

40

Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

are able to exchange views and opportunities, ask questions and contribute ideas, facilitate access to information and make them part of the process. •

Accessing the progress of the project It is very important for the project staff and other stakeholders to find out whether the project is progressing well or not.

•

Monitoring Information gathered among the target population will tell whether the project is well managed. Information gathered is very important in the sense that mechanisms to find out whether the project is following the original plan can be tracked.

•

Identifying strength and weaknesses Information gathering will tell whether the project needs improvements and how such improvements can be done. Information gathered can also be used to change the negative path of the project and put it in a right direction. Williams (2011: ) stresses that the first thing to do in the recovery process is to interview the project team members so as to learn the anti- growth factors of the project. Through analysis of data helps to design potential recovery plans for the project

•

Checking effectiveness Information, gathering and analysis will tell whether; there has been a difference or contribution made in terms of objective achievement. In what, effectiveness in project performance aimed at goal achievement.

•

Cost effectiveness Information gathering will tell whether the project is being run at a reasonable cost. The

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principle is that the cost should not exceed the benefits. •

Showing experience Information gathering will help to prevent similar mistakes to be made and where positive achievements are realized than they are encouraged.

It is important to note that the collection of information about the project together with its analysis and application is collectively referred to as monitoring and evaluation system.

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When considering an M & E system, it is very important to reflect on the purpose of its set up as shown below. “The collection and management of data which is to be analyzed and used for regular and periodic assessment of a projects relevancy, performance, efficiency and its impact on the ground in the context of its stated objectives’’.

5.2. Project Information System The M&E is a form of information system which is a broad term for information selecting gathering analysis and use. It can be described as a logical chain of linked, ideas, starting with information users.

Project information system as a logical chain

Who

Why

What

When

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Where

:

:

:

:

:

Information users

Specific purpose

Specific information

Timing needed

Sources of data

: How

What next

Gathering and analysis

:

Ensuring action

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Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

It should be noted that information users are those persons who are influenced by the project as well as those who influence the project e.g. Target groups in communities, project staff, donors etc. The major uses of information include; •

Taking decisions of what should be done next. Also showing experiences about the project with other persons or organizations.

•

Also specific information is required in order to ensure that the project is relevant, efficient and effective in line with the original plan.

•

Information gathering becomes necessary for the purpose of answering people’s needs.

•

It is also necessary for the purpose of maintaining and strengthening of the project.

5.3. Information Users The key categories of people and organizations that are interested in the project work •

Community It should be noted the members of the community are referred to as clients, beneficiaries, and target population. They may be individuals, families or community groups or whole villages. The specific kinds of people who need information about the project include; the community leaders, target group in the community and community at large or as a whole.

•

Local Organizations These may include CBO’s and NGO’s; it must be made clear, that CBO’s are potential local collaborators and they include among others, Mutual assistance societies eg. Micro Finance Organizations, cultivating groups and other local associations such as savings and credit schemes etc. It should also be noted that NGO’s whether local or international, share a lot of commonality/interest in the incoming projects and sometimes they are referred to as potential col-

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laborators with supplementary resources. •

Government The government collaborates and coordinates with the local people especially in the decentralized districts, some of the government officials have been earmarked to be policy makers and planners, they are therefore important partners in development, they include; permanent secretaries in various ministries at the national level, politicians such as members of parliaments (MPs) and even local authorities at the district level.

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43

•

Project staff These are also key information users; they include project managers and field staff who implement the activities of the project.

•

Donors These really matter a lot since they are the funders and for that matter, they expect to have all the details of the information concerning the progress of the project.

Other categories of people and organizations which need to be considered to be part of the progress of the project include:•

Academicians; Researchers and Consultants: These share professional interests with the staff and they are very instrumental in the process of analyzing the project information and contribute towards decision making. Some times they provide alternatives for the application of the project information.

•

The media, journalists, etc. These are important for dissemination of significant information results showing transparency and public accountability.

5.4. Kind of information needed for Monitoring and Evaluation It is very important to peruse through the necessary information for Monitoring and Evaluation system. Martin, V.(2006 : 1) asserts that successful management of a project is quite a balancing act through a reflection on experience, supported by thoughtful consideration of ideas, processes and techniques that have become recognized as the expertise of project management. If the project is to have actual results expected on the ground thus, the kinds of information are needed:•

Quality information; which is highly quantified, if M&E is successful, the project management staff should ensure that the gathered data is of good quality, analyzed well

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for proper application. •

Information should be relevant; the information must be relevant in such a way that the information users find it easy to interpret it and be able to apply it accordingly. Once the information is relevant, it means that most of the mistakes have been eliminated and for that matter therefore, Monitoring and Evaluation will be successful.

•

It should be time bound: The information should be available in time so that the necessary decisions can be made according to the time frame. It should be noted that the data collected, if it fails to reach on time and analyzed as early as possible and made ready for

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Abraham, Akampurira. Project Planning and Management: An Aspect of Development : An Aspect of Development, Diplomica Verlag, 2013. ProQuest Ebook Central,

use, it may be useless, thus the gathered information must reach the right destination at the right time if M&E is to be successful. •

Credibility: The information should be credible enough such that the information users should not doubt it. In short, the information should be believable.

•

Representativeness: The information should be able to represent the target group as well as all key stakeholders on a wider perspective.

5.5. How to ensure that the information is accurate and reliable •

Plan in advance, be specific as regards to information needed, and process it on time.

•

Simplify the information needs and systems for its gathering and analysis. You should be selective in as far as the information gathering methodology and samples are concerned.

•

Develop guidelines and standardize how to collect and analyze the information.

•

Triangulate methods of information gathering where necessary; use more than one method/source of data collection.

•

Encourage commitment among those responsible for data collection.

•

Try to use modern equipments such as computers.

5.6. How to ensure that the information is relevant to user needs Ensure that the project information can be analyzed and its results presented in accessible form. The information users should be able to access the results of the project and apply them accordingly. •

Consider the issue of literacy: If the information users are illiterate, then it is not advisable to have a written information report for they will not be able to read and interpret the information.

•

Be selective and prioritize the information needs. It is imperative to note that there is

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need to identify who needs what information, when and how it will be used. •

Identify the clients of the project and try to involve them in data collection and analysis.

•

Time frame: Should be a priority, any information gathered outside timeframe may not be able to answer the needs of information users.

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5.7 How to ensure that information is available on time •

Use simple tools for data collection and analysis so that information can be easily processed and handed in on time. Use of complicated tools may affect information gathering. Since such instruments may need to be applied by highly skilled manpower if such instruments are used, it means that information processing and interpretation will be complicated and may not reach the right destination at the right time.

•

Create a schedule with a deadline; the issue of deadline should be emphasized beyond which information should not be accepted. The participants should be sensitized about the need to meet the deadline.

•

Plan in advance and try to consult the information providers as well as their commitment towards this noble exercise.

Purpose, need, and concerns of key information users USERS

PURPOSE

KIND

OF CONCERN

INFORMATION 1. Community e.g.

Local

• To clear suspicion on • Aims/objectives deciding on whether to

and Simplicity, consistency,

target

leaders, cultur-

support project activi- Activities of the project.

al religious and

ties or not.

opinion leaders • For

• Resources necessary to time

planning

and

mobilizing members • To

support

the

bound

project are

all

concerns that

work.

project • Effect of the project on surround the

integrate

activities

accuracy,

into

par-

project work.

the community.

ish/village activities. • To

understand

the

project within cultural social

and

religious

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norms. 2. Target e.g.

group • To know the benefits of • Aims/objectives Women,

the project.

farmers, veter- • To know what contribuans

tions have been made. • To receive feed back from the project staff.

and Simplicity,

target activities of the consistency accuracy time

project.

• Resources necessary to bound are all support

the

project concerns that

work.

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surround

• To know the support • Effect of time project project work expected

from

the

on the community.

participants. 3. General

•

Why not me? To • Aims/objectives

community

target activities of the consistency

clear suspicion • To

know

and Simplicity,

expected

accuracy time

project.

benefits and contribu- • Resources necessary to bound are all tions

support

• To get feed back

the

project concerns that surround

work.

• Effect of time project project work on the community. 4. Government

• For

and • Annual plans.

planning

coordinating. • Allocation of resources

Time bound,

• Status reports.

project

• Evaluation reports.

relevancy etc.

• What the government expects from the project. • What

the

project

expects from government. 5. Project staff

•

To monitor project • Financial statements

budget • Quantity and quality relevance

activities

and tracking its ex-

Monitoring

staff

performance

ap-

praisals. Copyright © 2013. Diplomica Verlag. All rights reserved.

•

accuracy

outputs • Quantitative

penditures. •

Validity,

and feasibility

qualitative benefiting and needs

and

percep- sentative ness of the project.

tions.

Identifying

gaps,

constraints

etc.for

repre-

planning. 6 Field extension

•

workers. •

To

compare

•

Quantity

and Effectiveness services of the project,

achievements

quality

against targets.

in relation to time validity

To assess effec-

frame and project relevance of

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and

47

tiveness and methods and strategies.

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•

frame. •

Beneficiary

the re- etc.

To report about

sponses i.e. be-

communities.

havioral change.

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project

Chapter Six Winding up 6. Introduction In this stage, information is collected, analyzed and a report written to summarize all the project life’s impact on the beneficiaries. Project indicators are selected as a measure and yardstick of the project progress. These indicators are the qualitative and quantitative criteria used to check whether the proposed project objectives have been met.

6.1. Data collection Data is collected by use of interviews, observation, group discussions, questionnaire, where data is acquired. There are two information types used in the data collection process i.e. Qualitative and quantitative data. Qualitative data is numerical in nature with some tables and statistical figures while qualitative data is descriptive in nature. Most of information systems for monitoring and evaluation within projects require the use of both qualitative and quantitative data to deliberately measure accuracy of the project delivery in the community.

6.2. Data analysis It is important for the information system of monitoring and evaluation to include data interpretation and analysis. Raw data is converted into useful information so as to facilitate decision making.

6.2.1. Analyzing data for Monitoring and Evaluation •

Go back to the original objectives (intentions of the study). The original problem has to emphasize because the whole study revolves around the problem that needs to be addressed. The objectives of the study guide the researcher on how to answer or solve a problem. Just as the project is based on a logical frame work, the findings of the study

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need to be logical as well. The objectives of the study have to be put at a fore front. Every information gathered must be analyzed in light of the objectives set. Once the objectives of the study are being fulfilled by the data collected, the purpose of the study will have to be achieved. •

The raw data which has been gathered needs to be validated and confirmed by different sources and different methods. Once this is done, it makes the data more reliable and valid. It becomes of more value to decision makers once it contains all the necessary details.

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•

Follow a systematic logical path in the analysis. Start all the analysis by analyzing all data. Make sure you use checklists because it will be helpful in cross checking actual data that is now being presented against the data that had been previously planned for. Original data gathered using questionnaire, interviews etc, need to be thoroughly checked so as to be sure that all pieces of information have been included and have adequate identifications.

•

Discuss the findings and issues arising out of the analysis. It should be noted that the process of analysis is continuous, i.e. it begins with the information received during the actual research, and the information has to be continuously refined during the course of the whole exercise. Reflect the findings with other project staff for purposes of clarity. Other stakeholders can as well help to clarify puzzling issues and strengthen facts to make logical conclusions. Multiple perspectives are likely to generate solutions that are feasible and relevant.

•

Information users should have common concerns about the quality of information. In the first place, the information received through data analysis should be accurate and valid, thus during the analysis of data, the analyst considers any limitations that are likely to bring about the findings. Information users should have a common standard about the data collected and should be able to give testimonies whenever they are called upon.

•

Make specific recommendations and conclusions. Try to make all recommendations and conclusions as specific as possible in relation to the research study. This will increase the validity of the study and try to be very clear on who will or should be responsible by what time and what action is expected and how will it look like to the project management or other information users. The recommendations made should be suitable and meaningful to both project management staff, information users and other stake holders.

6.3. Report writing A report must be brief, precise, concise and to the point. The report should exercise one’s

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personal judgments. It should be noted that it is not necessary to report every minor fact or occurrence. You have to summarize less important ideas. In a well written report, the reader should be able to understand the main findings and conclusions without laboring much to refer to appendices. You have to use clear and simple language. This makes the report easier to understand for the reader. Highly technical words should be left out. Avoid large sentences with too many ideas. Use shorter sentences which can clearly be understood. 50

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Follow a logical sequence of presentation. It is advisable to have a clear, consistent and logical order while presenting the findings. Avoid unsupported statements and recommendations. Try as much as possible to support most of the statements and recommendations made. Unsupported statements may lead the reader to question the reliability of the researcher to the point of rejecting or ignoring the entire report. The reader should look back to the objectives; reflect on how the actual results obtained lead to the objectives. You must be practical and constructive. A good evaluation report will be practical in orientation; conclusions and recommendations. In this way, the readers will easily utilize the evaluation results in their own way of understanding the working situation. Make the final report attractive. It is necessary to make the report pleasant and attractive to the readers. Break your text in the most attractive manner with good paragraphs. Some information especially in the sections of Discussions and Conclusions need to be conveyed in words and text. Other information is well understood when expressed in form of tables, charts, diagrams. Information presented in this way, is quick to understand and provokes thinking.

Some projects may require retooling that causes more time for preparation and presentation. Longer projects may necessitate alternating phases for implementation, monitoring, and evaluation. Project managers should prepare for the distinct needs of each project phase. All this requires the project manager to understand the project cycle of the respective enterprise.

The knowledge of project planning, management, monitoring and evaluation is important because it empowers communities to build their capacity by identifying their own problems which results into projects that solve their local problems. It highly emphasizes planning from the grassroots to develop relevant, sustainable and efficient projects for respective communities. It therefore calls for community based planning that generally focuses on the problems of

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the people at the same time showing a good gesture of the government in its attempt to promote democracy among the people at grass root level. Government should develop policies where nationals are educated on the importance of putting all projects both by government and the private sector to be subjected to real planning and the entire project cycle for proper project management.

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References Bamberger, etal (1986). Monitoring and Evaluating Urban Development Programs, A Handbook of Managers and Researchers. Washington, D.C: World Bank Chandra,P .(2002), Projects: Planning, Analysis, Financing, Implementation and Review, New Delhi: Tata McGraw Hill Company limited.5th edition. David Needle, (1999). Business in Context : An Introduction to Business Environment. (2nd edition). London: International Thomson Business Press. Dinsmore, Paul C. (2011). AMA Handbook of Project Management. (3rd edition). American Management Association. Forsyth, Patrick.(2008), Improve your coaching and training skills, London: Kogan page. Grundy, (2001). Strategic Implementation Through Project Management. Thorogood Professional Insight. Thorogood. Heagney , L. (2012 ). Fundamentals of Project Management. (4th edition). USA: American Management Association. Heldman, K (2011). Project Management Jumpstart. Wiley Publications. Ian Dorton, (1998). Business Studies : A Core Curriculum. London : Scotprint. Kedrick Tom (2011). 101 Project Management Problems and How to Solve Them. Practical advice for Handling Real- world Project Challenges. AMACOM:American Management Association. Kendrick, Tom.(2011). Identifying and Managing Project Risk. Essential Tools for FailureProofing Your Project. New York : AMACON. Lewis, James P (2011). Project Planning Scheduling and Control. The Ultiumate- Hands on Guide to Bringing Projects in on Time and on the Budget. London: McGraw-Hill. Martin, Vivien. (2006). Managing Projects in Human Resources, Training and Development. London: Kogan Page. Maylor Harvey (2003), Project Management.(third edition.).Gosport: Ashford Colour Press Limited.

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Ohara, e tal (2009). Japanese Project Management : KPM- Innovation Development and Improvement. World Scientific. Prasanna Chandra, (2003),Projects, Planning, Analysis, Financing, and Implementation. (fifth edition). New Delhi: McGraw-Hill Publishing Company Limited Richman, Larry L.(2012). Improving your Project Management Skills. (2nd edition). USA:American Management Association. United Nations (2011). United Nations Rule of Law Indicators : Implementation Guide and Project Tools. 52

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William, Todd C (2011). Rescue the Problem Project. A complete Guide to Identifying ,

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Preventing and Recovering from Project Failure. American Management Association.

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