01_Project Management and Project Cycle

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BA 4618 Project Management 11

BA 4618

PROJECT MANAGEMENT

SESSION 1

Project Managementand Project Cycle


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What is a Project?

Is BA 4618 ProjectManagement Course aproject?

Why? Why not?

What may be a

project?Why?


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Origin

The word projectcomes from the Latin wordprojectumfrom projicere,"to throw somethingforwards" which in turn comes from pro-,

which denotes something that precedes theaction of the next part of the word in time(paralleling the Greek ) and jacere, "tothrow".

The word "project" thus actually originallymeant "something that comes before anythingelse is done".


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Definition of a Project

Project is -1a temporary endeavor undertaken to create a unique

product, service, or result. (PMI)

Project is -2

a series of activities aimed at bringing about clearlyspecified objectives within a defined time-period andwith a defined budget. (EU)

Project is -3

a complex, non-routine, one-time effort limited by time,budget, resources, and performance specificationsdesigned to meet customer needs. (Course Book)


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Characteristics of a Project

Major Characteristics of a Project are:

an established objective.

a defined life span with a

beginning and an end. (Temporary)across-the-organizational

participation. (Interdependencies)

doing something never been

done before. (Unique)specific time, cost, and

performance requirements.


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Comparison of Operational Work with Projects

Routine, Repetitive Work-Taking class notes

-Daily entering sales receiptsinto the accounting ledger

-Responding to a supply-chain request

-Practicing scales on thepiano

-Routine manufacture of anApple iPod

Projects-Writing a term paper

-Setting up a sales kiosk fora professional accounting

meeting-Developing a supply-chaininformation system

-Writing a new piano piece

-Designing an iPod that isapproximately 2 X 4 inches,interfaces with PC, andstores 10,000 songs


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Comparison: Project, Program & Portfolio



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What is a Project?

Is BA 4618 Project Management Course aproject?

Why? Why not?

What is Southeastern Anatolia Project?

A project?

A program?Repetitive work?


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What is Project Management ?

Project management is the application ofknowledge, skills, tools and techniques toproject activities, to meet project requirements.

Project management is accomplished throughthe application and integration of the project

processes of initiating (defining), planning,executing, monitoring, and closing(delivering).


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Managing a Project

Managing a Project includes;Identifying requirements,

Establishing clear and achievable objectives,

Balancing the competing demands for quality, scope,time, and cost,

Adapting the specifications, plans, and approach tothe different concerns and expectations of the variousstakeholders.


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Project Life Cycle

Monitoring

Closing/Initiating/

PROJECT CHARTERMANAGEMENT PLAN

Monitoring

1. Controls

2. Performance reporting

3. Risk monitoring


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Stages of a Conventional Project

Slow beginning

Buildup of size

Peak

Begin a decline

Termination


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The Challenge of Project Manager

The Project ManagerManages temporary, non-repetitive activities and

frequently acts independently of the formalorganization.

Marshals resources for the project.

Is linked directly to the customer interface.

Provides direction, coordination, and integration to the projectteam.

Is responsible for performance and success of the project.

Must induce the right people at the right time toaddress the right issues and make the right decisions.


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The Importance of Project Management

Factors leading to the increased use of projectmanagement: For Private Sector

Compression of the product life cycle

Rapid development of Third World

and closed economies

Knowledge explosion Sustainability (planet, people, profit)

Corporate downsizing

Global competition/Increased

customer focus

Coordinating small projects

For Public Sector Growing demand for customized supplies and services

Increased reliance on contractors for performance of mission criticalfunctions

The interference of international institutions


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Ideal Business Environment for PM

Project management is ideally suited for abusiness environment requiring:

Accountability

Flexibility

Innovation

Speed

Continuous improvement


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Pros and Cons of PM

Companies haveexperienced:

Better customerrelations

Shorter overall deliverytimes

Lower costs and higherprofit margins

Higher quality andreliability

Higher worker morale

Companies have alsoexperienced :

Greater organizationalcomplexity

Increased likelihood oforganizational policyviolations

Higher costs

More managementdifficulties

Low personnel utilization


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Integrated ProjectManagement

Systems

Problems resulting from the useof piecemeal projectmanagement systems:

Do not tie together the overallstrategies of the firm.

Fail to prioritize selection ofprojects by their importance oftheir contribution to the firm.

Are not integrated throughout

the project life cycle. Do not match project planning

and controls with organizationalculture to make appropriateadjustments in support of projectendeavors.


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Dimensions of the Project Management Process


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Project Cycle - WB


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Country Assistance Strategy

CAS approach aims boosting development.

A national strategy is prepared by the country, creating aframework for donors to better co-ordinate and aligntheir programs behind national priorities.

The Bank and other aid agencies then align their

assistance efforts with the country's own strategy. The CAS is produced in co-operation with the

government and interested stakeholders.

The preparation of the CAS may draw on analytical workconducted by the Bank or other parties on a wide rangeof economic and social sectors, such as health,education, agriculture, public expenditure and budgeting,fiscal management, or procurement, among others.


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Identification

Bank teams work with the government to identifyprojects which can be funded as part of theagreed development objectives.

Once a project has been identified, the Bank

team creates an internal document that outlinesthe basic elements of the project,

proposed objective,

likely risks,

alternative scenarios to conducting the project,

a likely timetable for the project approval process.


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Preparation

Preparation is driven by the country that the Bank isworking with and can take anything from a fewmonths to three years, depending on the complexityof the project being proposed.

The Bank plays a supporting role, offering analysis

and advice where requested. During this period, the technical, institutional,

economic, environmental and financial issues facingthe project will be studied and addressed.

An assessment is required of projects proposed forBank financing to help ensure that they areenvironmentally sound and sustainable.


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Appraisal

Bank staff review the work done duringidentification and preparation, often spendingthree to four weeks in the client country.

They prepare for bank management either

Project Appraisal Documents (investmentprojects) or Program Documents (for adjustmentoperations) and the Financial Management teamassesses the financial aspects of the project.


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Negotiation and Approval

After the appraisal the Bank and the country negotiateand come to an agreement on the terms and conditionsof the loan.

Project Appraisal Document (PAD) or the ProgramDocument (PGD) are submitted to the Bank's Board of

Executive Directors for approval.

The appropriate documents are also submitted for finalclearance by the borrowing government which mayinvolve ratification according to the country's legislation.

Following approval by both parties, the loan agreementis formally signed and the loan declared effective, orready for disbursement


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Implementation and Supervision

The implementation of the project is the responsibility ofthe borrowing country, the Bank is responsible forsupervision.

Once the loan is approved, the borrowing government,with technical assistance from the Bank, prepares the

specifications and evaluates bids for the procurement ofgoods and services for the project.

The Bank reviews this activity to ensure that itsprocurement guidelines have been followed. If theyhave, the funds will be disbursed.

The Bank's Financial Management Team maintains anoversight of the financial management of the projectincluding periodically requiring audited financialstatements


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Implementation and Completion

At the end of the loan disbursement period acompletion report identifying accomplishments,problems, and lessons learned is submitted tothe Bank Board of Executive Directors for

information purposes.


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Evaluation

Following the completion of a project, the Bankconducts an audit to measure its outcomeagainst the original objectives.

The audit entails a review of the project

completion report and preparation of a separatereport.

Both reports are then submitted to the executivedirectors and the borrower. They are notreleased to the public.


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Project Cycle - WB


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Project Cycle - EU

Tanmlama

ndeerlendirme

Uygulama

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ProgramlamaPROGRAMMING

IDENTIFICATION

FORMULATION

IMPLEMENTATION

EVALUATION AND

AUDIT


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Programming

The situation at national and sectoral level is analyzed toidentify problems, constraints and opportunities.

Socio-economic indicators and national priorities arereviewed

Purpose:

To identify and agree on the main objectives, andsectoral priorities,

To provide a relevant and feasible programmingframework within which projects can be identified andprepared

For each of such priorities strategies will be formulatedthat take account of the lessons of past experience


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Identification

Ideas for projects and other actions areidentified and screened for further study.

Such study involves consultation with the intendedbeneficiaries of each action

Analysis of the problems they faceIdentification of options to address such problems

A decision then can be made on the relevanceof each project idea, and on which ideas should

be further studied during formulation phase


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Formulation

Relevant project ideas are developed into operationalproject plans

Beneficiaries and other stakeholders participate in thedetailed specification of the project idea that is thenassessed for feasibility and sustainability

Feasibility: whether it will succeed

Sustainability: whether it will generate long term benefits

A decision is made on the basis of such assessmentwhether to draw up a formal financing proposal and seek

funding for the project


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Financing

Proposals are examined by the competentauthority to decide whether to finance suchprojects

Funding agency and partner country agree on

the modalities of implementation and formalizethese in a legal document which sets out thearrangements by which the project will befunded and implemented


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Implementation

The project is mobilized and executedManagement and supervision

Procurement and contracting

Monitoring

Risk managementFinancial management

Testing and closure


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Monitoring and Evaluation

MonitoringTo assess implementation performances andachievements in order to take corrective actions

Evaluation

To assess the impact of the project, if objectives havebeen achieved, and to learn lessons by identifyingshortcoming and mistakes that occurred duringimplementation, in order to improve the execution of

future projects


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Project Cycle Management - EU