PROJECT

DEFINING A PROJECT
• A temporary endeavor undertaken to create
a unique product, service or result.
• Changing something from the way it is to the
desired state
• performed by people
• constrained by limited resources
• planned, executed and controlled
• Many related activities BUT Focus on the outcome

• Projects can be • Regular teamwork focuses on the work process

• large or small and
• take a short or long time to complete.
• Defined start and end, specific scope, cost
and duration
– A project ends when
• its objectives have been reached,
or
• the project has been terminated.
• A series of activities
aimed at bringing about
– clearly specified objectives
– within a defined time period and
– with a defined budget
• It is
PROJECT CHARACTERISTICS
 HOW TO CATEGORIZE DIFFERENT TYPES OF PROJECTS
SIX TYPOLOGY
1 2 3 4 5 6

MARKET- INDUSTRIAL NEW DIRECTLY CAPITAL DEMAND

DRIVEN PROJECTS INVESTMENT PRODUCTIVE INTENSIVE BASED
PROJECTS PROJECTS PROJECTS

2. CRISIS- MANUFACTU EXPANSION INDIRECTLY PEOPLE –BASED NEED

DRIVEN: RING PROJECTS: PRODUCTIVE PROJECTS BASED
PROJECTS PROJECTS

3. CHANGE- MANAGEMEN UPDATING MIXTURE OF RESOURCE

DRIVEN: T PROJECTS PROJECTS THE TWO BASED

RESEARCH
PROJECTS
 TYPES OF CHANGE AND PROJECTS
Transactional change Transitional change Transformational
Undergoing from one change
state to another, related
state

Outcomes Simple and predictable Simple yet Complex, and

unpredictable or unpredictable
complex yet predictable

Level of investment Low Higher Highest

Change or Little to no Some, incremental Potentially sweeping

modification in and radical
structure

Existing policy Little to no Some modifications Major change

Individual skills and Little to no Some modifications New way of thinking

abilities needed to
implement change

Role of stakeholders High Very high

RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS

• National policy: set overall policy objective e.g. National Development policy

• Sectoral policy: Policies for the various sectors of the economy.

• Sectoral strategy: Approaches that should be undertaken to achieve the stated

policies of the government.

• Sub-sectoral strategy: When the sector is large & diverse it is necessary to develop
sub-sector strategies.

• Programs-can be relatively large & diverse, longer term

• E.g. National level programs, crop prodn, livestock program, nutrition.

A program may cover a whole sector( e.g. health sector program) or focus on one
part of the health sector( e.g. primary health care program) or be a package of
projects with a common focus/theme; or it may define what is essentially just a
large project with a number of different components.
RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS

• Devt. Policy
– is converted into reality through projects

– take place within a complex envt of multiple actors, policies, programs, & projects.

• All countries have national plans

• National plans spell a range of economic & social objs & strategies meant to
enhance devt.

• Development plans & projects are closely interlinked.

• Sound development plans require good project just as

• Good projects require sound planning.

RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS

Programs

• are planned continuous or ongoing devt investment activities that are not

generally time-bound.

• may consist of a no. of projects with distinctly specified time & resources

Plan is a more or less operationalized versions of general programs.

• Can be long medium & short term plans with specific & quantitative targets.

• Medium term development plans are the main sources of project ideas.

• Plans can also be categorized as indicative, regulatory, indirect & central/direct.

• Indicative, regulatory & indirect planning may imply greater decentralization of

decision making over investment decisions.

• These have significant role for project identification & preparation.

RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS

Projects

• are usually the smallest unit of development programs & plans.

• are derived from the prevailing development policies.

• are fundamental components of the devt efforts of increasing provision of goods

• e.g. public sector programs.

• are normally included in the public investment planning process wherever they
make a claim on the government budget.

• E.g. where part or all of a public sector project is funded for government revenue
where either public or private sector makes use of government loan-guarantees.

• Projects that do not make a claim on budgetary resources may not be included in
the public investment planning process.
RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS

• Projects can be shorter term, more location specific, more easily

bounded & managed.

• Therefore Project can be defined as

• A project is a complex set of activities where resources

are used in expectation of returns & which lends it to
planning financing & implementing as a unit. A project
usually has a specific starting point & a specific ending
point, intending to accomplish specific objectives.
Questions
 PROJECT CYCLE

Upon completion, you will be able to …

• List the purpose and types of project life cycle models
• Distinguish between project and product life cycle
• Define the role of phase reviews in PM
• Apply a model to a hypothetical and a real project
 KEY CONCEPTS

• Project phase: “A • Project life cycle: • Product life cycle:

collection of “Collectively the • The natural
logically related project phases grouping of ideas,
project activities are known as the decisions, and
usually project life cycle.” actions into
culminating in the product phases,
completion of a from product
major conception to
deliverable.” operations to
product phase-
out.
 PROJECT CYCLE(PC)
ORIGIN OF THE CONCEPT OF PC
• devt projects as the time bounded creation of physical assets
↓
recognition of phases within the project process
↓
concept of the project cycle.
WHAT IS A PROJECT CYCLE ?
• a sequence of events which a project follows.
• Follows the life of a project from the initial idea through to its completion
• Provides a structure to ensure that stakeholders are consulted
• Defines key decisions, information requirements and responsibilities at each phase
PC in practice
• this division is less distinct
• elements of one activity spilling over into one or more of the others.
So
• Comprehensive project planning should be an iterative process
Meaning
• Results in 1stage of z project influence decisions in z other stages
 TRADITIONAL (BLUEPRINT) APPROACH:
• Aka …the Blueprint approach. Why?
• uses the imaginary of blue prints of
Identification
engineering drawings
• Projects need to be systematically &
carefully planned in advance &
implemented strictly according to the
defined plan.
Potential projects suggestions emerge from
specialists, local leaders & national devt
strategies.
Identification of potential SHs, particularly 1 SHs.
Carry out pb assessment & decide upon key
objectives.
Assess alternative strategies for meeting objective

Generally, useful approach to Investment In

Capital Intensive Projects.
SUMMARY OF THE STAGES IN PC
STAGE 1: PROJECT CONCEPTION
STAGE 2: PROJECT IDENTIFICATION
STAGE 3: PROJECT PREPARATION
STAGE 4: PROJECT APPRAISAL
STAGE 5: PROJECT SELECTION
STAGE 6: NEGOTIATION & FINANCING
STAGE 7: PLANNING FOR IMPLEMENTATION
STAGE 8: IMPLEMENTATION
STAGE 9: MONITORING & REPORTING:
STAGE 10: EVALUATION:
Preparation The technical, institutional, economic,
and analysis environmental, & financial issues facing the
project studied & addressed
including whether there are alternative methods
for achieving the same objs.
Assessing feasibility as to whether & determining
whether to carry out more advanced planning.
Project plan developed which can be appraised
Appraisal Critical review or independent appraisal of project
plan
Implementatio The project plan is implemented over a specified
n and time period.
Monitoring Monitoring of project performance with a
management information system to enable
correction of implementation problems as they
arise.
Evaluation On-going and final assessment of the success of
the project against original objectives, to learn
lessons to help improve future projects
 EXAMPLE OF THE PROJECT CYCLE

Programming

Evaluation Identification

Financin
g
decision
Implementation Formulation

Financing
decision
The EU Project cycle
The WORLD BANK Project cycle
The UNDP Project cycle
The UNEP Project cycle
Project Cycle

Identification
Phase 1

Evaluation Preparation and

Phase 5 formulation
Phase 2

Review and
Implementation approval
Phase 4 Phase 3
 THE PROCESS (ADAPTIVE) APPROACH

• Based on new ideas & experience gained from practical application of

traditional approach, process approach of the WB was developed in
1994.
The process approach model
• reflects more of a process as opposed to a traditional (blueprint)
• is of particular relevance for which beneficiary participation is imp
• has the following successive stages
»Experimentation:
»Piloting
»Demonstrating
»Mainstreaming
• Active participation is likely to have many benefits, although it is not a guarantee of project
success
• Achieving full participation is not easy.
• It can also take a lot of time, and conflicting interests are likely to come to the surface
Little input
by others
Being consulted, Work with
Others analyze and others
Decide course action
Control,
Being informed, Co-operation/
others set the agenda
collective action or
Partnership Co-learning
Consultation

Being manipulated; Informing

No real power

Coercion

Decided by others Decided by ourselves

Levels of participation
 THE PROCESS (ADAPTIVE) APPROACH
1. Experimentation:

devt problems or objectives are defined &

possible solutions, methods of analysis & implementation r identified

These are then subject to pilot trials for their

appropriateness, adaptability, acceptability, transferability to local

conditions.

Making the project idea/concept originates from local communities &

other beneficiaries as well as on the needs & priorities of zcommunity.

2. Piloting : is starting small scale projects with trials of different techniques in

a holistic approach to incorporating social, cultural, physical, intuitional, &
ecological actors.
 THE PROCESS (ADAPTIVE) APPROACH

3. Demonstrating: is conducting trials on representative scale village,

kebele with established mechanism through joint participation.

4. Mainstreaming: is process of extending the project to a large scale

woreda, district region based on the results of demonstration.

As particular methods are found to be successful on an experimental

scale, they are taken successively through wider & more
comprehensive coverage in order to reach a larger public, each stage
growing out of the results & methods of the previous one
 THE PROCESS (ADAPTIVE) APPROACH

Intrinsic to this approach is the idea that while a general objective &
direction for project intervention can be defined,

• specific actions & services may change as a result of review &

evaluation of individual phases.

• This is sometimes called a process approach,

• to highlight a flexible two way interaction b/n project agents &

consumer or beneficiaries for whom the project is intended.

• It might result, for instance, in redesign of systems of delivering

primary health care or relocation of health centers, following earlier
design & experimentation.
 THE PROCESS (ADAPTIVE) APPROACH

• It does not change the basic concept of a project as a time bounded

investment
• must still be prepared & implemented (perhaps with successive stages of
experimentation & modification if process approach is followed) &
• It has found a more ready application in the rural & social sectors than the
industrial & infrastructural sectors, partly
• Because rural & social development is intimately affected by the reaction of
people, as project agents & beneficiaries) & therefore less easy to plan &
define in advance.
• By contrast the blueprint approach remains important for capital intensive
projects where there is paramount need to plan & account carefully for
expenditure incurred in the public sector.
 THE MIXED APPROACH
• A more recent devt has been to combine elements of both approaches,

– breaking the project idea down into discrete & distinctive stages

– defining a clear set of objectives for each stage, &

– allowing changes in approach & techniques between stages.

• We need to keep in mind the necessity of managing & implementing the

project as planned, while at the same time retaining as much flexibility as
possible in order to make changes to the overall design where necessary.

• The point is whether the blueprint or process approach is followed, is to see

beyond the project & to ensure that the efforts lead to the creation of
lasting & beneficial assets.