NOTE ON PROJECT PLANNING & MANAGEMENT

CHAPTER ONE
GENERAL INTRODUCTION
1.1. Definition of project
In most cases, it's easier to describe than to define a project. However, a project is referred to as:
"It is a proposed undertaking involving a complex set of economic activities in which
scarce resources are committed in expectation of benefits that exceed the resources in
order that investment decisions are wisely carried out in the area of development plan,
formulation implementation." Or

"Project is a set of proposal for the investment of resources into clearly identified set of
action that are expected to project future benefit of fairly a specific kind, the whole series
of action be the subject of individual plan, and examination before begin adopted and
implemented within a single overall managerial and financial framework".
In a brief statement, a project is just a proposal to invest money in certain activities with the
expectation of return in the future.

The easiest way to define a project is to outline the common characteristics that it might be
expected to have:
A. a project involves the investment of scarce resources in the expectation of future benefits.
B. a project can be planned, financed and implemented as a unit. Often projects are the
subject of special financial arrangement and have their own management.
C. a project has a specific starting and finishing time in which a clearly defined set of
objectives is expected to be achieved. Usually achievement of those objectives can be
measured.
D. a project has a conceptual boundary, usually geographical but sometimes organizational.

In general, a project is a specific activity with specific starting point and specific ending point
intended to accomplish a specific objectives and with a pre-determined input resources.
1.1.1. TYPES OF PROJECTS
One can identify four major types of projects; experimental project, pilot project, demonstration
project and production project.

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A. Experimental project: attempt to address a problem in an innovative manner using the

alternative approaches. E.g., crop innovation.
B. Pilot project: the pilot project strengths the applicability of the experience derived from
experimental project to local level. It can highlight the problem of implementation: test
the effectiveness of the approach adopted and can provide valuable training experiences
for personnel. An important function of a pilot project is to test the replicability of the
project to other areas and to other beneficiaries.
C. Demonstration project: it's basically a form to exhibit new techniques or approaches of a
pre-tested experiment. E.g., Demonstration farms used to disseminate new crop varieties
among farmers.
D. Production project: the production project has the role of increasing productivity,
adjusting to scale requirements and a high degree of replicability.
1.2. PROJECTS AND PLANS (RELATIONSHIP).
Planning in general is a conscious effort to direct human energy for the purpose of securing a
rationally desirable end. Planning is a means to an end. It's a guide to achieving certain
objectives in an optimum manner by means of an orderly sequencing of activities. In other
words, planning is a form of decision making in using scare resources in selective and
economical ways to achieve a pre-determined objectives or goals.
Planning is necessary because:
- it helps to make necessary arrangements in advance of possible challenge
- it helps an organization to think ahead and anticipate future events
- it gives clear picture of future events to measure and control actual activities
- it helps to identify operational problems of past performance and future corrections
 Plan requires projects: a sound plan requires a great deal of knowledge about
existing and potential project. Since a plan lay down growth rate target, for Gross Domestic
Product (GDP), investment, employment etc, a realistic assumption must be established with
regard to such growth. This pre-supposes a knowledge of the rate at which good projects can
be planned.

Thus, good and realistic plan cannot be formulated in the absence of a great deal of project
planning and without proper economic appraisal of projects.

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 Project requires plan: since projects commit scarce res, project selection is
meaningful only when it is placed within the broader development-planning framework. The
best economic appraisal of projects cannot be made without referring framework and plans
and policies. To choose the right project one must have an estimate of demand for the
product. But the estimation of demand could be more realistic if the plan is also realistic.

1.3. PROJECTS AND PROGRAM

Policies are implemented through programs usually overall lengthy time scale of five to ten
years. Programs have broadly expressed development objectives. while projects are the building
blocks of programs and are usually of shorter duration. A project is a means by which national,
regional local, etc plans are made operational. This means the plan has to be elaborated into
"package of action".

The package of action can be divided into two broad categories. These are:
A. Program: which is the first step in plan elaboration and
B. Project: the second step in plan elaboration.

Program, which is a bigger package of action is composed of a number of projects aiming at

attaining one or more related objectives of plan. Project on the other hand achieve goals which
lead to the accomplishment of specific objectives within program.

The following are the basic difference between program and project.
 A program is broader in scope than a project.
 A program is a domain out of which project can be found.
For example, if we think of extension program under this program we could identify
different projects like irrigation, crop production, Honey production etc.
 A program has general objective while projects have a specific objectives. For example,
if the objective of the extension program is self food efficiency, the objective of the
project could be increasing crop production, milk production, honey production etc which
are more specification than being general.
 Project has a specific project area while program don't have a specific program area.

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 Projects have specific beneficiary groups. For example, if one establishes a cattle raring
project at Somalia region, that doesn't mean that every Somalia will be willing to buy
your product rather there will be a specific client who will purchase your product like
Yemen etc.

The difference and similarities between project and program can be summarized in the following
table:
Project Program
Difference - It is specific in objectives - Has got general objectives
- Has specific areal/geographic unit - May not have specific area
- Has clearly determined and - May not have specific target
allocated fund group
- Has specific life - May not have clear and detailed
financial allocation
- May not have specific time of
ending
- Has purpose/objectives
Similarities - Require input (financial, manpower, material)
- Generate output (goods or services)
- Operate over space and time

1.4. The Project Cycle

Projects usually go through a series of identifiable stages. The various stages through which
project planning proceeds from inception to implementation are often called "the project cycle."
It is the project's life cycle through which the projectadvances from infancy to maturity. There
are a number of models of the project cycle. One of the most known models of project is
developed by Mr. W.C. Baum of the world Bank has coined the term "project cycle" in 1970,
and his model of project cycle refer Baum's model of project cycle.

However it is naïve to think that a project cycle as a successive stages overtime. There are in
fact, much feedback between the project cycle stages, and sometimes, some stages have to be

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undertaken simultaneously. It is preferable, therefore, to think of the project cycle in the form a
computer program, which describes the process more accurately.

The separate stage of project planning are:

- Project Identification
- Project Preparation
- Project Appraisal
- Project Implementation and
- Project Evaluation

1.4.1 Project Identification

Projects identification amounts to finding projects, which could contribute toward achieving,
specified development objectives. Or the first stage in project cycle is to identify an idea, which
enable to launch a project.

1.4.2 Project Preparation

If the pre-feasibility study indicates that the projects is, prima facie, promising and further work
is justified, the project enter the stage of preparation.

The project is now being seriously considered as a definite investment action and detailed
planning of the idea can begin project preparation (sometimes called project formulation) covers
the establishment of technical, economical and financial feasibility. Decision have to be made on
the scope of the project, location, and site etc. Complete technical specifications of distinct
proposals accompanied by full details of financial and economic costs and benefits are the
outcomes of the project preparation stage. The project now exists as a set tangible proposals.

Project preparation is probably the most important stage in project planning. Crucial choices
relating to the structure of the project are made at this stage and some of them are virtually
irreversible. Crucial choices at the stage of preparation should be made properly by employing
the right criteria.

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1.4.3 Project Appraisal

Project appraisal can be defined as second look at a project report by a person or an institution
that is in no way involved in its preparation. It helps in taking an entirely independent view of
the project. Appraisal is the comprehensive and systematic assessment of all aspects of the
proposed projects.

Appraisal highlights wide area in the project with the ultimate objective of strengthening them
adequately so as to ensure final success of the project. The main objective of the appraisal is to
improve and renovate the project with the cooperation of the promoter (financing agencies). It's
in this stage that the bank will judge whether the project is acceptable or unacceptable.

1.4.4 Project Implementation

In this stage, funds are actually disbursed to get the project set up and running. Translating
project plan into actual investment and operation is one of the most critical and difficult task. No
matter how sophisticated or detail the project preparation work, it has no value unless it is
transformed into action or implemented.

Implementation can be defined as a project stage which covers the actual development or
construction of the project up to the point at which it becomes fully operational. It includes
monitoring of all aspects of the work or activity as it proceeds. It's where the earlier preparations
and designs, plans and analysis are tested in the highlight of reality. The project's objectives are
realized only when it is successfully implemented.

Implementation stages begins immediately after the final decision on the project and ends when
it starts rendering the benefit envisaged. While in earlier stages of project planning there was
more thinking and less action, in this stage more actions and less thinking is needed.

Project analysts generally divide the implementation phase into three different time periods.
These are:
1. The investment period: when the major project investments are undertaken.
2. The development period: when the project's production builds up.
3. The life of a project: when full development is reached.

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1.4.5 Project Evaluation

Once a project has been carried out, it is often useful (but not always done) to look back over
what took place, to compare actual progress with the plans, and to judge whether the decisions
and actions taken were reasonable and useful. This we call evaluation.

Evaluation can be defined as a systematic and periodical gathering, analyzing and interpreting of
inputs, information to see the effects and impacts of a development programme/project in order it
may be adjusted where necessary.