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0007L - PROJECT PLANNING & APPRAISAL

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Paper by Professor Omar Hasan Kasule Sr.


LEARNING OBJECTIVES:
Learn conceptual and practical aspects of project planning
OUTLINES:
BACKGROUND READING
Feasibility study is basis for appraisal
What is a project?:
Stages / life cycle of a project:
Hard and soft projects
Feasibility study
Project Planning: definition
Advantages of project planning:
Components of a project plan:
Project Director
Identifying project objectives
Project Team
Stakeholders
Scope of work statement
Project tasks
Key stages
Budgeting
Milestones
Human resource allocation
Establish control procedures
Creativity
Review:

DISCUSSION
Check-list of project director responsibilities
Comparing traditional with matrix project structures

BACKGROUND READING
INSTRUCTIONS: THE DISCUSSION LEADER OR THE MEMBERS (IN TURNS) WILL PRESENT THE MAIN POINTS IN THE BACKGROUND READING SECTIONS PRE-ASSIGNED THE PREVIOUS WEEK

Overview: This chapter deals with project proposals, their appraisal and determination whether they should be accepted for implementation or not.

Feasibility study is basis for appraisal

What is a project?: A project is a group of activities carried out with clearly defined time and cost to reach specific objectives. A project is not routine or part of the day-to-day operations

Stages / life cycle of a project:

Conception based on research, perceived need / problem

Feasibility study: includes fact finding, alternative approaches, economic evaluation, sources of finance, effect on current operations, and  project assumptions

Project planning

Implementation

Termination

Evaluation

Hard and soft projects: A hard project starts off with a clear plan and objectives and all details worked out in advance. A soft project starts only with general and vague objectives and concrete details are developed as you go along

Feasibility study: Review feasibility study and update information and assumptions

Project Planning: definition: Project planning is a type of operational planning

Advantages of project planning:

Reduce risk

Clarify objectives

Set standards for performance

Set up structure for implementation

Set up a control system

Components of a project plan:

Objectives

Methodology

Scheduling

Budget

Organizational structure

Procedures for control

Procedures for communication

Performance standards

Project Director:
A project director must be appointed very early in the life of the project and should participate in the planning process

Terms of reference and authority for the director should be defined.

A list of specific responsibilities should be drawn up for the director including: planning,  organizing, directing, and controlling.

The project director must have the following leadership qualities: team leader, motivator, negotiator etc.

Some large projects must have a project steering committee in addition to the director

Identifying project objectives: Project objectives must be specific, measurable, achievable, realistic, and  time bound

Project Team: Set up project team, explain project to them and make sure they understand. You may use a traditional hierarchical system or matrix system (skills matrix). Make sure that you balance personalities.

Stakeholders: Identify internal and external stakeholders, analyze their open and hidden agendas, plan how to manage them. Define the project stage that concerns every stake holder must be identified.

Scope of work statement: Scope of work statement describing the work to be performed including specifications

Project tasks: Brain-storm to identify project tasks and group them as key stages of the project

Key stages: Order key stages in a logical order taking into account any dependencies. Assign duration to each stage. Break down key stages into several levels of detail. Develop an operational plan for each key stage allowing for contingencies.

Budgeting: Avoid the following mistakes in budgeting: inaccurate scope of work statement, lack of standards, wrong work schedules, inaccurate time estimates, ignoring inflation

Milestones:
Determine project milestones (start, end, and duration of each stage) and represent on a chart or graphically making sure you allow for float time.

CPM is a project network diagram on which you can identify the critical path that determines the shortest time in which the project can be completed and also the total project time. Critical activities have zero float time

A Gantt chart can show the critical path, the milestones, responsible persons, review meetings. Project time should be converted to calendar time

Human resource allocation: Plan human resource allocation by day and assign tasks to individuals by name. A linear responsibility chart shows the task, who is responsible, and the estimated time.

Establish control procedures

Creativity: You should not plan to the last detail. Leave room for creativity of the implementors

Review: The plan must be updated continuously during implementation.


DISCUSSION:
CHECK-LIST OF PROJECT DIRECTOR RESPONSIBILITIES

PLANNING
            PROJECT PLAN
            PROJECT SCHEDULE
            PROJECT BUDGET
            COST CONTROL PROCEDURES
            PROJECT CONTROL PROCEDURES
            SPECIFICATIONS AND STANDARDS

ORGANIZING
            ORGANIZATIONAL STRUCTURE AND CHART
            JOB DESCRIPTIONS FOR PROJECT TEAM MEMBERS
            HIRE PROJECT TEAM MEMBERS
            PLAN RESOURCES

DIRECTING
            PROCEDURES FOR PROBLEM SOLVING
            PROCEDURES FOR DECISION MAKING
            MAINTAIN TEAM MORALE
            CONFLICT RESOLUTION

CONTROLLING
            MAKE SURE OBJECTIVES ARE ACHIEVED
            MAKE SURE PLANS AND SPECIFICATIONS ARE FOLLOWED
            PROJECT PROGRESS/STATUS REPORTS

COMPARING TRADITIONAL WITH MATRIX PROJECT STRUCTURES

Indicate (yes/no) for each criterion below comparing traditional  and matrix project structures

ITEM                                                                                       TRADITIONAL          MATRIX
-------------------------------------     -                                   ---------           -------
CONTROL IS TIGHT
CONTROL IS EFFECTIVE
AUTHORITY IS WELL DEFINED
REPETITIVE REPORTING TO SEVERAL BOSSES
RESPONSIBILITIES WELL DEFINED
PROJECT LEADERSHIP IS CLEAR
COMMUNICATION CHANNELS EFFICIENT
COMMUNICATION ON PERSONAL BASIS
VERTICAL COMMUNICATION
CONFLICT BETWEEN PROJECTS LIKELY
HORIZONTAL COMMUNICATION
RESOURCE UTILIZATION EFFICIENT
RESOURCE ALLOCATION FLEXIBLE
COST EFFECTIVE
PRIORITIZATION EASY
CHANGE OF PRIORITIES NOT COMMUNICATED
TEAM WORK IS EASY
COST CONTROL IS EASY
CRISIS INTERVENTION IS EASY