1

Project Financing CAT

Question 1
1. Determine the best strategic action you would adopt to fast-track the project.
The best strategic action to adopt in order to fast-track a project would be managing tasks in
parallel. The process would begin with an analysis of the project schedule and ensure that
tasks happen in sequence. A thorough outlook at the project plan and Gantt chart would
identify activities that are currently scheduled to happen in sequence and I would think of
which of these activities could be overlapped. For effective identification. I would identify
tasks that have different resources and have one started before the other is completed. For
tasks that depend on each other, I would first conduct a risk assessment to see how soon the
second task could begin.
2. Discuss the project phases that you would adopt as the consultant to complete the
project.
Project Initiation: This is the first phase of the project cycle, and the value and feasibility of
the project is measured. As a consultant, I would use two main tools – the business case
document and feasibility study to decide the viability of the project. The business case
document justifies the need for the project and estimated the potential economic benefits. The
feasibility study evaluated goals of the projects, timelines, monetary value, and lawlessness.
It is during this phase that the viability of the project is determined. If feasible, the project
proceeds to the following stage.
Project Planning: Planning involves the adoption of a well-written plan that guides team
members on the structure of the project and how to achieve set goals and objectives within
specified scopes and limits. The team is directed on how to produce quality outputs, handle
risks, communicate benefits to stakeholders, and manage the project. The time, scope, and
cost of the project is determined during the planning phase.
Project Execution: Most of the management duties are executed in this phase, where
deliverables are built to satisfy the consumer. Resource allocation is made and team members
focus on the tasks they are assigned.
Project Monitoring and Control: Monitoring and control involves monitoring the execution
of tasks and calculating key performance indicators. This phase is important as variations
between cost and time must be observed in order to ensure that the project attains its scope.
Project Closure: This is the final phase of the project cycle, and involves delivery of the
final project to the customer and communication upon completion or release of resources.
Though the last, it depends with the nature of projects as there are those that require after-
support. During this phase the project team evaluates the project document, identifies any
mistakes and successes and builds stronger processes.
 2

3. As a consultant identify and discuss how you would mitigate the challenges during
the phases of project process.
Clarification of Requirements: This involves being solid sure of what you want in the
project. Feasibility studies in the first phase are made to eliminate such risks and hence call
for ideas to be tested and questions to be asked to different stakeholders in order to avoid
blame games and the notion of we were not aware beforehand.
Getting the Right Team in Place: Human resources present risks to projects due to the skills
they present. When a project manager hires people with inadequate skills, then the aftermath
is incompetency in the project. In addition, project team turnover may affect the scope of the
project due to inadequate human resources. Hence, it is important to get the right team for the
project and ensure that they have competent skills as required by the project.
Assess Feasibility: The use of feasibility studies and prototypes must be over emphasized in
order to test ideas and solutions before the complete project is made. Prototypes avert risks by
checking and re-checking concepts, methodologies, and solutions.
Having Contingency Plans: Contingency plans are supposed to cater for possible future
occurrences or circumstances. These plans cover unforeseen risks and can also act as
mitigation strategies through raising awareness.
Question 2
a) What is project management
Project management can be defined aa a process involving the initiation, planning, execution,
monitoring, and completion of a task with the aim of achieving set goals and objectives
within a defined scope. It involves team work and application of knowledge, skills
deliverables, tools, and techniques within projects in order to ensure that success is achieved.
Currently, the business environment is full of projects, which in most instances involve
planning and organizing company resources in order to achieve specific tasks.
b) Mount Kenya University (MKU) has several centres and campuses all over
Kenya. MKU offers a number of programs of master degree level. Prepare a
logical framework (log frame) to evaluate the Executive master of business
administration (MBA) programme in University CBD campus.
Project Indicators Means of Risks/Assumptions
Summary Verification
Goal 10% improve in % of E-MBA Comparison of N/A
the number of students enrolments for
students enrolling for previous
enrolling for E- the next semesters
MBA semester
 3

Outcomes Have more E- More More students More students

MBA enrolments for completing and completing E-MBA
enrolments and E-MBA enrolling for E- program
graduates graduates MBA program
Outputs More than 50 E- Number of E- E-MBA student E-MBA student
MBA students MBA students graduation graduation records
will graduate graduating records for 3 for 3 years
within 3 years years
Activities Run continuous Number of E- Number of E- Number of E-MBA
advertisements MBA student MBA student student graduates
on mainstream enrolments graduates
media and
social media

Question 3
a) When analysing the risk of a project, a project can be viewed in different
perspectives. Discuss three different perspectives that can be used in project risk
analysis.
The perspectives are defined from Bánáthy’s models and include;
Bird Eye Lens: The perspective is linked to the systems-environment model that looks at
systems within and in relationship with their larger environment or contexts. In risk
assessment, this perspective defines the intersection between identified individual risks in
order to determine the nature of assessment. The perspectives question the ability of the
organization to consider holistic approaches in dealing with the impacts of risks and risk
management, or have them handled by different stakeholders. It also helps in the
identification of the risk management initiatives that can be managed and what cannot be
managed.
Still Picture Lens: The perspective is based on the structure/functions model that looks at
complex systems at a specific point in time. This perspective helps in the identification of the
most critical risks and the order of prioritizing and implementing risk management efforts for
specific identified risks. Other elements include how monitoring of the identified risks is
conducted, actions that ensure risk assessment drives real and positive change within the
agreed timeframe, and what lessons organizations learn from the occurrence.
Motion Picture Lens: The perspective is linked to the process model that looks at as system
based on how it is changing over time. This perspective determines the process through
which organizations identify emerging risks before their impact is felt. The process may
 4

include the identification of how risks could unfold, how risks and uncertainties can be
incorporated in normal operations and businesses, how team members can be empowered to
make more informed decisions, and how to manage threatening risks while at the same time
saving on resources.
b) Discuss project budgeting and include the main characteristics of budgets.
Project budgeting involves the process of creating budgets that match and outline the
financial goals for project activities. Budgets ensure that project managers have reference
platforms for their expenses, which is essential in any operation. The budgeting process is
important because it comes up with budgets that drive project funding and provide the basis
for project cost control. The main characteristics of budgets include;
 Flexibility to allow changes in changing environments
 Expressed quantitatively and in monetary form using figures
 Practical to implement
 Comprise of numerous stakeholders involved in drawing up the final draft
 Prepared for a fixed duration of time
 Spells out policies and objects to be pursued in order to achieve stated objectives
 Analyses costs and revenues
 Considers monitoring and report budget performance periodically.
The budget must also be able to address the goals of an organization of a project. This
includes both the short and long-term plans and goals. It must not recreate the previous year’s
results, but must offer valuable input from planning. Hence it is an important guiding tool.
Finally, the budget must have the maximum support of the management at all levels.
Question 4
a) Discuss the various sources of business financing
Commercial bank loans: This is the most ancient form of business financing where business
people approach banks for loans based on the value of their businesses, business plans, and
perceived ability to pay back the loans. Banks have come up with different packages for
supporting business people, with some packaging loans for farmers and others for young
innovators.
Personal resources/private funding: Individuals use their personal resources from savings
directly to finance their business. This can be done through numerous saving procedures that
could include borrowing out money from friends or family, or taking out some credit funding
from home expenses or other expenses.
Government grants and subsidies: Government provide financing that may be available for
businesses. For instance, governments are providing funds to support young innovators and
projects by women, which if accessed and used well could be a source of financing for many
businesses as per the nature of grants introduced.
b) Define a Gantt chart and give an example of typical Gantt chart
 5

Gantt charts are scheduling visual tools that are used to show project tasks displayed against
timeline. They hold important information detailing who is assigned a task, what task is
assigned, and when the task is expected to be executed and completed. The main aim of using
Gantt chats in project management is for scheduling activities by displaying them against
time, and hence important in project planning. The figure below shows an example of a Gantt
chart.

Figure 1: Gantt chart

Source: https://www.projectmanager.com/gantt-chart
Question 5
A logical framework is a tool used to help to strength project design implementation and
evaluation. the extent of this;
a) Explain the term logical framework and discuss the importance
Logical Framework is a tool that provides an overview of the activities, resources, and
objectives of a project. The document also includes information about external forces that
may impact the project, as well as the monitoring process and project indicators (Verzuh,
2015). The information is presented in the form of a table with four columns and four rows.
The tool can serve numerous purposes among them planning individual projects as well as
following-up and evaluating complex programs. The advantages of the logical framework
include;
Facilitating project management: As already defined above, logical framework has
monitoring and evaluation provisions that are used by project managers to identify indicators
that describe the measurability of objectives in terms of monitoring and evaluation (Bong,
 6

2014). Hence, a transparent framework is established and any rationales and assumptions
available to revise the design made available. Besides, all stakeholders involved in the project
are explicitly made aware of project objectives and activities over time.
Improving project design and supervision: A logical framework helps in the achievement
of structured project design proves by providing a summary of the development key elements
consistently and coherently as per the project outlines (Bong, 2014). As such, the quality of
the project is improved due to improved internal consistency and logic, which links the
design phase with the supervision phase and other phases of the project.
Fosters project performance: A logical framework is organized in a manner through which
objectives are organized hierarchically, and hence, forcing planners to identify important
assumptions and risks (Bong, 2014). The structured and logical approach used in setting
priorities and determining the intended results and activities are important in the planning,
designing, implementation, and evaluation phases of projects. Hence, logical framework uses
a results based management approach due to its logical approach, clarity, and accountability
in project management phases.
b) Describe the criteria project designers can use to set good project indicators
Project designers can use the SMART criteria to set good project indicators (Singh,
Chandurkar, & Dutt, 2017). The acronym stands for Specific, Measurable, Attainable,
Relevant, and Time-bound.
Specific: A project indicator must accurately describe what is intended to be measured, and
must have each measurement matching with one indicator
Measurable: Consistency in results must be obtained and tracked under same conditions
notwithstanding the use of the indicator.
Attainable: Information collection for the indicator must be cost-effective and simple to
execute.
Relevant: There must be a connection between the indicator, its output and input.
Time-bound: The indicator must factor in a specific time frame. Actions must be planned
within the available time frame and completed accordingly.
c) Define and explain the purpose of a feasibility study
Just as the name implies, a feasibility study in project management is an assessment of
project ideas in order to determine their viability (Andler, 2016). This involves the evaluation
of the technical and legal elements of the project and determining its ability to be
implemented. Many questions answering the why and what are asked and answered during
feasibility studies. Feasibility studies define the ability of projects to be worth to invest, and
assures stakeholders of the economic justifiability of a project. This involves answering
questions such as is the project technically feasible, is the investment new and economically
sound? What will be needed to maintain the project and other many questions.
 7

References
Andler, N. (2016). Tools for project management, workshops and consulting: a must-have
compendium of essential tools and techniques. John Wiley & Sons.
Bong, A. (2014). What Are the Advantages and Disadvantages of Using the Logframe in
Development Work?.
Singh, K., Chandurkar, D., & Dutt, V. (2017). A Practitioners’ Manual on Monitoring and
Evaluation of Development Projects. Cambridge Scholars Publishing.
Verzuh, E. (2015). The fast forward MBA in project management. John Wiley & Sons.