Dileep K Adhikary, PhD /PRAM Associates Project; PCM; Tools Dileep K Adhikary, PhD /PRAM Associates

Project Project is one off. Project refers to investment activity. It is objective oriented and time, space and cost specific. Its very orientation is autonomous as it seeks to be promoted at control level.

Projects Originate … A market demand (e.g. an oil company authorizes a project to build a new refinery in response to chronic gasoline shortages) An organizational need (e.g. a training company authorizes a project to create a new course in order to increase its revenues) A customer request (e.g. an electric utility authorizes a project to build a new substation to serve a new industrial park)

A technological advance (e. g A technological advance (e.g. a software firm authorizes a new project to develop a new generation of video games after the introduction of a new game-playing equipment by electronics firms A legal requirement (e.g. a paint manufacturer authorizes a project to establish guidelines for the handling of anew toxic material)

Project Life Cycle Phases: Initial, Intermediate, Final Inputs: Idea, Project Management Team Project Management Outputs: Charter, Scope Statement, Plan, Baseline, Progress, Acceptance, Approval, Handover Project Deliverable: Product

Phases of project Project moves from one phase to another and ultimately it leads to new cycle to roll on. The key phases of the life cycle are: Identification Formulation Appraisal/Financing Implementation Evaluation

Project Cycle Management Identification is the starting point of a project. Needs and investment climate are two specifics which are stormed in cracking an idea for a specific project. With the pre-selection of the project out of identified projects, the feasibility of the project is looked into and a report charting out a project proposal is prepared. Depending upon the size of the project, project studies are either taken lumpsum or broken into pre-feasibility, feasibility and detailed engineering

Project appraisal is undertaken for the purpose of determining appropriateness for investment decisions. Basically, assumptions are examined, findings are evaluated, project alternatives are compared, project is also compared with other projects, the critical factors are reassessed. Deciding to go about it, financing is sought and project proposal is transformed into financial proposal

The implementation is made in accordance with the management plan – drawn up during the development phase and finalised during appraisal phase. Implementation will take care of further planning. There will be delays and cost overruns when conditions change, the implementation will otherwise try to fix the projects at control order of time, quality and cost.

the project is evaluated to examine outcomes with expectations (impact as against goals/objectives. cost as against outlays and benefit cost ratio as against estimations/forecasts), provide feed back for future project planning that will either widen the considerations or strengthen the modifications.

Deciding on a project Do brain storming and select a project. Once selected look into its key aspects: -Marketing -Technical -Financial

Project elements and integration of: -Scope -Time - Cost - Quality - Human resources - Communication - Risk - Procurement

Project Cycle Management (PCM) was introduced by the European Commission in the early 1990’s to improve the quality of project design and management and thereby to improve aid effectiveness. PCM developed out of an analysis of the effectiveness of development aid undertaken by the OECD Development Assistance Committee during the late 1980’s.

Why PCM? Unclear strategic framework Supply driven projects Experiences PCM Unclear strategic framework Supply driven projects Poor analysis of situation Activity-oriented planning Non-verifiable impact Disbursement pressure Short-term vision Imprecise project documents Sectoral approach Demand driven solutions Improved analysis Objective-oriented planning Verifiable impact Emphasis on quality Focus on sustainability Standardised formats

principles of PCM  1. Adherence to the phases of the project cycle to ensure a structured and well-informed decision-making process. 2. Client orientation through the use of participatory planning workshops at key phases of the project cycle, and the formulation of the Project Purpose in terms of sustainable benefits to be delivered to beneficiaries.

3. Incorporation of features of sustainability into project design to ensure sustainable benefits. 4. Use of the Logical Framework Approach to ensure a consistent analytical approach to project design and management. 5. An integrated approach which links the objectives of each project into the objectives of the programme and the national and sectoral objectives within the country; ensures that project workplans and budgets are prepared on the basis of the project logframe; and using the basic format to ensure consistent and comprehensive treatment of key issues throughout a project’s life.

PCM brings together aid management principles, analytical tools and techniques, and applies them within the structured decision-making process of the project cycle to ensure that: projects are relevant to the agreed strategy and to the real needs of beneficiaries projects are linked to sectoral, national and Commission objectives beneficiaries are involved in the planning process from an early stage problem analysis is thorough

objectives are clearly stated in terms of benefits to target groups projects are feasible in that objectives can be realistically achieved within the constraints of the operating environment and the capabilities of the implementing agencies: objectives are logical and measurable risks and assumptions, and the implementing agencies capabilities are taken into account

monitoring concentrates on relevant targets projects are sustainable factors affecting sustainability are addressed as part of project design results from evaluation are used to build lessons learned into the design of future projects

PCM Tools Project planning and management tools provide the practical mechanisms by which relevance, feasibility and sustainability can be achieved. The core tool used within PCM for project planning and management is described Logical Framework Approach (LFA).

The LFA is an effective technique for enabling stakeholders to identify and analyse problems, and to define objectives and activities which should be undertaken to resolve these problems. Using the logframe structure, planners test the design of a proposed project to ensure its relevance, feasibility and sustainability. In addition to its role during programme and project preparation, the LFA is also a key management tool during implementation and evaluation. It provides the basis for the preparation of action plans and the development of a monitoring system, and a framework for evaluation.

Stakeholders should be involved as fully as possible, which requires teamwork and strong facilitation Tools for technical, economic, social and environmental analysis must support the LFA. Other tools that are used include Environmental Impact Assessment, Gender Impact Analysis, and Financial and Economic Analysis.

LFA It is a project planning matrix The approach is split into two phases: ¨ Phase 1 - the Analysis Phase during which the existing situation is analysed to develop a vision of the ‘future desired situation’ and to select the strategies that will be applied to achieve it  ¨ Phase 2 – the Planning Phase during which the project idea will be developed in operational detail

Logframe Approach Analysis Phase Planning Phase ò Problem analysis – identifying stakeholders, their key problems, constraints and opportunities; determining cause and effect Relationships ò Analysis of objectives - developing objectives from the identified problems; identifying means to end relationships ò Strategy analysis - identifying the different strategies to achieve objectives; determining the overall objectives and project purpose Logframe - defining the project structure, testing its internal logic, and formulating objectives in measurable terms   Activity scheduling - determining the sequence and dependency of activities; estimating duration, setting milestones and assigning responsibility  Resource scheduling - from the activity schedule, developing input schedules and a budget