EBUS 818 Project Management

and Feasibility Analysis

By
Vincent Onodugo, PhD, FCAI, FIIA
[email protected] 08035487972
 Course Outline
Module 1: Meaning and Definition of Projects
• Introduction
• What is a Project?
• Meaning of Project Management
• Approaches and Scope of project management
• What are the duties /functions of project
management
• Project cycle and phases
 Module 2: Project Planning
• Meaning of project planning
• Principles and objectives of project planning
• Project Work Plans and TOR
• Project Planning Techniques
– Work Breakdown Structure (WBS)
– Gant Chart
– Critical Path Method
– Management by objectives
 Module 3: Project Management
• What are the duties /functions of project
management
• Effective project execution
• Leading and motivating project team
• Problem solving process
• Understanding the structure of the problems
in projects
• Problem solving techniques
Module 4: Project Monitoring and Evaluation

• Introduction
• Definitions
• Comparison between Monitoring and Evaluation
• Why do we monitor and evaluate projects?
• Project monitoring cycle or process
• Components and terms used in project planning
• Monitoring logical framework
• Tools and techniques for project management
 Module 5: Project Sustainability
• Concept/definition of Project Sustainability
• Why are We Bordered About Project
Sustainability?
• Causes of Abandoned Projects
• Goals of Project Sustainability
• Planning For Sustainability
• Steps And Strategies For Project Sustainability
Module 6: Feasibility and Analysis
• What is project feasibility ?
• Reasons for project feasibility
• Difference between feasibility studies and
business plan
• Project risk matrix
• Scope of project feasibility
 Introduction
• According to Eric Verzuh (2005:1):
“we live in a world where change-and the rate of change-is
constantly increasing. In order to survive and prosper,
organisations need to continually modify their products and
services. Projects are the means by which these innovations
are effected”.
• Greater change = more innovations = more projects.
• In today’s globalised world increased access to information
has led to more demand by service users, workers,
community, etc.
 -Introduction Cont-
• The bottom-line is that it is no more business as
usual
• Consequently, every organisation is in one form
of transition or the other i.e either researching
for new ways of doing things, adapting to new
technologies, devising more efficient ways of
providing service, etc.
• All these transitions can only be implemented
through series of co-ordinated projects
 What is Project Management ?
• Project: This is a scientifically evolved work
plan devised to achieve specific objectives
within a given period of time.
• A project can be defined as initiative to bring
about change. This is done in order to achieve
specific objectives, within a timescale, in a
given context. (Baume, Martin and Yorke,
2002:1)
 What is a “project”?

A project is a unique effort with a defined

beginning, a defined end, specific
deliverables, and defined resources.

Schedule Resources

Scope
 Characteristics of a Project
• It has a clear stated objectives to be achieved
• A projected time frame for its accomplishment
• A stated course of action or work plan
• It is implemented by a team with a defined leader
• It has someone acting as sponsor who expects the
outcomes to be delivered on time; and
• It is a one-off activity that would not normally be
repeated.
 Project Management Defined
• Management on the other hand is the process
(planning, organising, directing and controlling) by which
resources are combined and utilised to achieve a
predetermined objectives
• Project Management: This is the process by which the
resources committed to projects are combined and
utilized efficiently toward the realization of the project
objectives.
– Project management is the facilitation of the planning,
scheduling and controlling of all activities that must be done
to achieve project objectives
Project Cycle and Phases

Planning

Sustaining Implement
project beyond
initial start up ation

Project
monitoring and
evaluation
 Functions of Project management or a
Project Manager
• Planning: This is where the project objectives and means of
achieving them are stated
• Facilitate communication to ensure information reaches
stakeholders
• Mobilise and deploy scarce resources that are required to
accomplish projects
• Motivate and help the team members get the work completed
• Provide leadership by inspiring and positively influencing the
project team to accomplish tasks
• Control activities through monitoring, evaluation and review of
activities
 Module 2: Project Planning

• Meaning of project planning:

– Project Planning is the thinking through process which
helps you to determine the project objectives to be done
and how it is going to be done.
• Project Planning Concern
(4ws + H)
– What to do
– When to do it
– Where to do it
– Who should do it, and
– How to do it
 Project planning cont
• Project planning outcomes:
– Objectives: These are the ends-in-view of any project
exercise. It is a clear statement of what is to be achieved. In
most cases it is stated to be SMART compliant
– Strategy: These are means by which our objectives will be
realized, i.e. publicity objectives for instance can be realized
through sign boards, stickers, mass media programmes.
– Project work plan: This will be discussed at another section
– Project Budget : This is the cost attachment to project
activities
 Objectives of project planning
• It gives direction to project implementation activities
• It specifies which resources are needed and provides
basis for preparing budget
• It helps in the project monitoring. The targets and
time lines outlined in the work plan helps project
implementer to tract progress and effect corrections
where necessary
• It provides in advance the indicators for measuring
project output and outcomes
 Principles of Project planning
• Start by identifying project stakeholders:
– The project sponsor.
– The customer who receives the deliverables.
– The users of the project outputs.
– The project manager and project team
• Do a stakeholders’ need analysis
• Involve stakeholders in the project planning to ensure
uptake, support and ownership
• Let there be local content participatory contribution to
the project
• Ensure you assess project risk and sustainability
 Components of Project Work Plan
• Project Objective: This is statement about what you
hope to accomplish with your project
• Strategy: These are series of activities put in place to
achieve your project objectives
• Activity: How a project uses its inputs to achieve
outputs and enable outcomes
• Input: The resources needed to implement a project
activity and achieve project outputs. For example:
staff, consultants, volunteers, new technology, new
equipment, and supplies
 Components of Project Work Plan
• Output: This is a direct, tangible, and measurable product
of a project activity. An output is usually expressed as a
number of units delivered. For example: 5 classes held, 3
outreach materials developed, 200 participants served,
300 hours. This is sometimes called deliverables
• Outcome: This is the expected change arising from
implementing the project. It is the resultant impact of
project activities and outputs. For example:
– Output: five doctors were trained
– Outcome: patients receive prompt and adequate attention
 Components of Project Work Plan
• Impact: This is the long term effect of project outcome. For
instance,
– Output: Five doctors were trained
– Outcome: patients receive prompt and adequate medical
treatment
– Impact: there is a radical drop in the mortality rate of the people
of community
• Indicator: An indicator is the measurable “evidence” or information
that tells you whether or not your project is achieving its intended
outcomes. For instance, an indicator that training is impacting on
medical treatment is the number of patients discharged (for in-
patients) or the length of time it takes to see all outpatients in a day.
• Time Line/ Time frame: This is the duration given for a project
activity or the expected period within which a project is to be
implemented
 Steps to Developing Work Plan
• State the overall strategic direction of the Project
• Identify a key priority area of objective that the project
seeks to solve
• List all the activities associated with achieving the stated
project objectives 
• Identify the party or parties involved in the
implementation of the activities
•  List all the equipment and resources required for
implementation of the above activities
 
 Steps to Developing Work Plan
• Simulate a work flow of which activities
should come first and which one should
follow the other. 
• Indicate the time each activity would take (in
some cases state the time to start and when it
is expected to finish)
• State performance indicator that will show
that the objective is accomplished
 Work Plan Template
N0 ACTIONS RESPONSIBILIT TIME FRAME RESOURCES OBJECTIVELY MEANS OF
Y VERIFIABLE VERIFICATION
1 (Detailed activities needed to (When will this (What are the INDICATOR
achieve service improvement) (Who will lead on activity be budgetary (What will provide
activity, who will achieved) requirements for (What will indicate evidence that the
support) this activity) that the action action has been
has been successfully
successfully completed)
completed)
2

5
What is Terms of Reference (TOR)?
• The terms of reference (ToR) is a document
that defines all aspects of how a consultant or
a team will carry out a project .
• The terms of reference set out a road map and
boundaries with respect to implementing
project activities and realising its objectives.
• TOR is crafted during the planning stages and
derives from the work plan
 Objectives of TOR
• Set boundaries on the project
• know what is and isn't within their jurisdiction
• Understand the context/ background in which
the TRs have been framed
• Helps the team/consultant to have a clear idea
of project objectives and outcome/product
• It provides basis for determining contractual
relationships and honoraria
 Content of TOR
• Mission Statement (Essential) : A short statement, preferably
one or two sentences which explain the mandate given to either
the steering committee or project team.  
• Problem Statement (Essential): Defines the problem in 2 or 3
paragraphs and explains simply what
service/product/operation/issue is affected and how the
problem is evidenced. This is often the most difficult section to
write, yet it is essential to articulate the problem that caused the
review/project to be initiated.
• Boundaries (Essential) : This section, of about one paragraph or
a series of dot points, describes where the
process/system/operation/issue to be studied begins and ends.
 Content and Writing of TOR
Specific Issues to be Addressed (Essential) : This section is the most important
because it represents the work which will be actually undertaken by the
team/s.
In preparing this list, clarity is essential to provide focus and direction for the
team/s. Be SMART Compliant
Desired Outcomes/Outputs (Essential) : TOR should state clearly the expected
impact of the project. This section must be strictly linked to the problem which
is the catalyst for the project. . Only one paragraph should be necessary to
identify and localise the expected outcomes. Usually they fall into making
recommendation for:
• solving a problem;
• improving a process or a system;
• making a change;
• creating a new system.
 Content and Writing of TOR
• Persons involved: TOR will specify the
qualifications and experience of the
consultant/team to carry out the assignment
• Project administration including:
– timeframes;
– meetings;
– reporting guidelines;
– resources; and
– intervention strategies.
 Guidelines on writing TOR
• Let the TOR derive from and state clearly the
project plan objectives, problem statement,
approach and outcome
• Use simple and unambiguous terms ( explain
relevant terms where necessary)
• Be brief but detailed enough to capture all the
essential elements
• state the deliverables and timelines clearly
 Critical Path Method or Analysis
• A Critical Path Analysis is a diagrammatical
representation of what needs done and when.
• Critical Path Analysis flow diagrams are very good
for showing interdependent factors whose
timings overlap or coincide.
• They also enable a plan to be scheduled
according to a timescale.
• Critical Path Analysis flow diagrams also enable
us do time estimate, costing and budgeting
 BENEFITS OF CPM TO MODERN PROJECT
MANAGERS
• It will aid project managers to systematically plan their
projects objectives and sequence the related activities. This
is currently lacking in most of the projects embarked upon
by organisations.
• CPM/PERT techniques will help project mangers identify the
specific life span of the projects and estimate the cost of the
project.
• The techniques will facilitate control as responsibilities are
clearly distributed and time and other resources stipulated.
Deviations will immediately show and corrections effected.
• The main benefits of CPM/PERT is its inherent ability to
engender economy in resources use. This will help project
managers become more efficient and productive.
Example :Preparing simple fried breakfast

• First note down all the issues (resources and

activities in a rough order)
• Assemble crockery and utensils, assemble
ingredients, prepare equipment, make toast, fry
sausages and eggs, grill bacon and tomatoes, lay
table, warm plates, serve.
• Place them in order of occurrence and note
those that can take place concurrently
• Place them in sequence and time them
Example of CPM
 Fish Bone Analysis
• Fishbone diagrams are very good for identifying
hidden factors which contribute to project
having difficulties, problems and breakdowns
• Fishbone diagrams are also called 'cause and
effect diagrams' and Ishikawa diagrams, named
after Kaoru Ishikawa (1915-89), a Japanese
professor specialising in industrial quality
management and engineering who devised the
technique in the 1960s.
 Fish bone analysis Cont
• Fish bone is strategically used when:
– When one wants to study the issues that
contribute to a problem
– To highlight all the issues why a project is having
problem
– Need to identify areas for data collection
– To provide basis for intervention and providing
solution
Fishbone Analysis
Diagram
•A fishbone diagram has a
central spine running left to
right, around which is built a
map of factors which contribute
to the final result (or problem).
•For each project the main
categories of factors are
identified and shown as the
main 'bones' leading to the
spine.
•Into each category can be
drawn 'primary' elements or
factors (shown as P in the
diagram), and into these can be
drawn secondary elements or
factors (shown
 Gantt Chart Technique
• Gantt charts are excellent models for scheduling,
timing, budgeting, communicating and reporting
project plans and progress easily and quickly
• It helps to diagrammatically arrange project
activities in their order of occurrence and duration
• The Gantt Chart is named after US engineer and
consultant Henry Gantt (1861-1919) who devised
the technique in the 1910s.
 Management by Objectives -MBO
• Concept and Philosophy
– Peter Drucker, the main exponent of MBO describes its
main thesis in the following words:
– Any business enterprise must build a true team and weld
individual efforts together. Each member of the
enterprise contributes something different but they must
all contribute towards a common goal. Their efforts must
all in the same direction and their contribution must fit
together to provide a whole-without gaps, without
friction and without unnecessary duplication of effort (op
cit)
 Benefits of MBO
• Management Directions
• The Practice Of MBO Facilitates The Inculcation Of Team Spirit:
•  
• MBO Encourages System Perspective to Project Implementation
•  
• The Practice of MBO Encourages Systematic Planning Of Organisation
Effort
• MBO Is Capable Of Offering Boost Of Morale And Hence Motivate
Workers:
• MBO Helps In Providing Yardstick For Appraisal, Compensation And
Control
Work Breakdown Structure (WBS)
• A work breakdown structure is a key project deliverable that
organizes the team's work into manageable sections.
• The Project Management Body of Knowledge defines the
work breakdown structure as a "deliverable oriented
hierarchical decomposition of the work to be executed by
the project team."
• The work breakdown structure visually defines the scope
into manageable chunks that a project team can understand,
as each level of the work breakdown structure provides
further definition and detail. Figure 1(below) depicts a
sample work breakdown structure with three levels defined.
 Guidelines for WBS
The following guidelines should be considered when creating a work breakdown
structure:
• The top level represents the final deliverable or project
• Sub-deliverables contain work packages that are assigned to a organization’s
department or unit
• All elements of the work breakdown structure don’t need to be defined to the
same level
• The work package defines the work, duration, and costs for the tasks required to
produce the sub-deliverable
• Work packages should not exceed 10 days of duration
• Work packages should be independent of other work packages in the work
breakdown structure
• Work packages are unique and should not be duplicated across the work
breakdown structure
 Benefits WBS
• General organisation and manning of the work
• Material and resource estimation
• Budgeting
• Timing and monitoring of deliverable
• Identification of project risks
Module 3: Project Management
 Project Management Defined
• Management on the other hand is the process
(planning, organising, directing and controlling) by which
resources are combined and utilised to achieve a
predetermined objectives
• Project Management: This is the process by which the
resources committed to projects are combined and
utilized efficiently toward the realization of the project
objectives.
– Project management is the facilitation of the planning,
scheduling and controlling of all activities that must be done
to achieve project objectives
 Functions of project management or a
Project Manager
• Planning: This is where the project objectives and means of
achieving them are stated
• Facilitate communication to ensure information reaches
stakeholders
• Mobilise and deploy scarce resources that are required to
accomplish projects
• Motivate and help the team members get the work completed
• Provide leadership by inspiring and positively influencing the
project team to accomplish tasks
• Control activities through monitoring, evaluation and review of
activities
 Leading and Motivating Project Teams

• Leadership is all about influencing project

team towards the desired result
• Leadership Roles:
– Visioning and pro-activity
– Aligning others to the vision
– Mobilizing resources to achieve group goals
– Motivating group members into action
– Evaluation and control
 Sources/Skills of Leadership Influence
sources skills
• Adaptation Competency:
• Official/legitimate • Energy
power • Self –confidence-
• Optimism –
• Reward power • Interpersonal Competency:
• Skill/expertise power
• Affective power
• Coercive power
 Problem Solving Techniques
• There are a several techniques for solving
problems but we shall limit ourselves to
the following three:
– The Five Whys
– Vilfredo Pareto 20/80 Principle
– Impact-cost analysis
– Fish bone analysis
 Five Whys
A technique for stepping through successive layers of symptoms
to find the root problem statement.
• Go to the point of occurrence of the problem
• Begin asking “Why?”
• Using a flowchart, track back from symptom to symptom until
you find:
– The root cause
– A level where permanent corrective action can be implemented
– A point where “Why?” can no longer be answered
 Five Whys
• The 5 why's refers to the practice of asking,
five times, why a failure has occurred in order
to get to the root cause/causes of the
problem.
• There can be more than one cause to a
problem as well.
• This root cause analysis is often done by a
team with knowledge of the problem process
or item.
 Pareto Analysis
• Pareto Analysis This technique is used to selecting the
most important changes to make. Often better known
as “The 80/20 Rule,” Pareto helps you locate where
you can derive the greatest benefit by expending the
least relative effort (or cost or resources or what have
you).
• 80% of the land and resources are owned by 20% of the people
• Critical few versus trivial many
• Examples of 80/20 principles
– 80% of the results are achieved by 20% of the time
– 80% of the revenue is derived by 20% of the customers
 Problem Description
Pareto Analysis
Ball Lifting Percent Cum Percent
Frequency
Cause (%) (%)
Bonder Set-up
19 38% 38%
Issues
Unetched Glass
on Bond 11 22% 60%
Pad
Foreign Contam
on Bond 9 18% 78%
Pad
Excessive Probe
3 6% 84%
Damage

Silicon Dust on
2 4% 88%
Bond Pad

Corrosion 1 2% 90%

Bond Pad Peel-off 1 2% 92%

Cratering 1 2% 94%

Resin Bleed-out 1 2% 96%

Others 2 4% 100%

Total 50 100% -

55
Problem Solving techniques: Impact-Cost
Analysis
H

Implement

Organisational
Impact of Projects

L
H Cost of Projects L
 Impact- Cost Analysis
• This is a problem solving tool that helps one to
make the most of available scarce resources
• In the quadrant listed in the previous slide the
preferred option is the one with the high
impact and the least cost.
• This preferred position is good in all cases but
more in a situation where quick impact is
required at the shortest possible time
 Fish Bone Analysis
• Fishbone diagrams are very good for identifying
hidden factors which contribute to project
having difficulties, problems and breakdowns
• Fishbone diagrams are also called 'cause and
effect diagrams' and Ishikawa diagrams, named
after Kaoru Ishikawa (1915-89), a Japanese
professor specialising in industrial quality
management and engineering who devised the
technique in the 1960s.
 -Fish bone Analysis Cont-
Fish bone is strategically used when:
◦ When one wants to study the issues that
contribute to a problem
◦ To highlight all the issues why a project is having
problem
◦ Need to identify areas for data collection
◦ To provide basis for intervention and providing
solution
•
Fish Bone
A fishbone diagram has a
Diagram
central spine running left
to right, around which is
built a map of factors
which contribute to the
final result (or problem).
• For each project the main
categories of factors are
identified and shown as
the main 'bones' leading
to the spine.
• Into each category can be
drawn 'primary' elements
or factors (shown as P in
the diagram), and into
these can be drawn
secondary elements or
factors (shown
 Problem Solver Characteristics
• Persistent
• Intuitive (supported by mechanical aptitude)
• Logic & discipline
• Common sense
• Ability to balance priorities
• Ownership
• Inquisitive and willing
• Creative and open minded
• Needs proof & facts
Project Monitoring and Evaluation
 Definitions
• Project: This is a scientifically evolved work plan devised to
achieve specific objectives within a given period of time.
OR

• Any initiative des igned to bring about change with specific

objectives, that has a timeline, in a given context.
– It has a clear stated objectives to be achieved
– A projected time frame for its accomplishment
– A stated course of action or work plan
– It is implemented by a team with a defined leader
– It has someone acting as sponsor who expects the outcomes to be
delivered on time; and
– is a one-off activity that would not normally be repeated
 Definitions --Cont
• Monitoring and Evaluation are control
processes aimed at ensuring that goals and
objectives of projects are realised as planned
• specifically, monitoring is the systematic and
continuous assessment of the progress of a
piece of work over time or,
– to continuously measure progress against
programme objectives and check on relevance of
the programme
 Definitions ---Cont
• Evaluation on the hand, is the periodic
assessment of an on-going or completed
projects to determine relevance and fulfilment
of objectives, as well as efficiency, effectiveness,
impact and sustainability of a project.
• Project monitoring and Evaluation is therefore
the systematic assessment of completed and on-
going project to ensure that it is achieving or has
achieved the objectives set out during planning.
Comparison between Monitoring and Evaluation
Item Monitoring Evaluation

Frequency Regular, ongoing Periodic

Main action Keeping track/oversight Assessment

Basic purpose Improving efficiency Improve effectiveness,

Adjusting work plan impact, future
programming
Focus Inputs/outputs, process Effectiveness,
outcomes, work plans relevance, efficiency,
impact, sustainability
Information sources Routine systems, field Same plus
visits, stakeholder Surveys (pre-post
meetings, output project)
reports, rapid Special studies
assessments
Undertaken by Project/program staff External
evaluators/auditors
 Why do we Monitor Projects?
• It documents progress and results
• Monitoring compares intentions with results
• It guides timely decisions on project revisions,
verifies targeting criteria and whether assistance is
reaching the people intended.
• It checks the relevance of the project to the needs.
• It integrates and responds to community feedback
• It enhances transparency and accountability
 Monitoring
• Data for monitoring must be----
– Useful and relevant
– Accurate
– Regular
– Acted upon
– Shared
– Timely
Why and When of Project Evaluation

Why evaluate Projects?

• To document lessons learnt during
project implementation for future use
• Improve policy and practice
• Enhance accountability
 Why and When of Project Evaluation
• Evaluation is done when;
– Monitoring highlights unexpected results
– More information is needed for decision making
– Implementation problems or unmet needs are
identified
– Issues of sustainability, cost effectiveness or relevance
arise
– Recommendations for actions to improve
performance are needed
– Lessons learning are necessary for future activities
The project cycle

Project
EVALUATION Improvement &
sustainability

Monitoring

Project Project Planning &

Implementation Design

*
 Project M&E Cycle
• Project Design : This is the project planning phase where
the project objectives including performance metrics and
indicators are set.
• Project Implementation: This is where the project activities
are implemented as stipulated in the plan
• Monitoring: This entails obtaining timely and reliable data
on the performance results to ensure that all is working
according to plan. This could come in form of performance
reports, stakeholders’ assessment feedback and the like.
• Evaluation: This entails periodic assessment of projects
results to ensure relevance and efficiency
• Improvement and sustainability : The gaps and deviations
identified in the last two steps are corrected at this point to
ensure that things work as planned and project sustained
till the end.
Components/Terms used in Project Planning

• Project Objective: This is statement about what you

hope to accomplish with your project
• Strategy: These are series of activities put in place to
achieve your project objectives
• Activity: How a project uses its inputs to achieve outputs
and enable outcomes
• Input: The resources needed to implement a project
activity and achieve project outputs. For example: staff,
consultants, volunteers, new technology, new
equipment, and supplies
Components/terms used in project Planning
• Output: This is a direct, tangible, and measurable
product of a project activity. An output is usually
expressed as a number of units delivered. For example:
5 classes held, 3 outreach materials developed, 200
participants served, 300 hours. This is sometimes
called deliverables
• Outcome: This is the expected change arising from
implementing the project. It is the resultant impact of
project activities and outputs. For example:
– Output: five doctors were trained
– Outcome: patients receive prompt and adequate attention
 Components/terms used in project Planning
•Impact: This is the long term effect of project outcome. For instance,
–Output: Five doctors were trained
–Outcome: patients receive prompt and adequate medical treatment
–Impact: there is a radical drop in the mortality rate of the people of
community
•Indicator: An indicator is the measurable “evidence” or information
that will tell you whether or not your project is achieving its intended
outcomes. For instance an indicator that training is impacting on
medical treatment is the number of patients discharged (for in-
patients) or the length of time it takes to see all outpatients in a day.
 Components/Terms Used in Project Planning
•The means of verification of progress towards achieving the
indicators highlights the sources from where data is collected. The
process of identifying the means of verification at this stage is
useful as discussions on where to find information or how to
collect it often lead to reformulation of the indicator.
•Assumptions are external factors or conditions that have the
potential to influence the success of a project. They may be factors
outside the control of the project. The achievement of a projects’s
aims depends on whether or not assumptions hold true or
anticipated risks do not materialise.
•Time Line/ Time frame: This is the duration given for a project
activity or the expected period within which a project is to be
implemented
 Project Logical Framework

Indicators Means Assumption

of s
verifica
tion
•The logical
framework or Goals Impact
logframe is an
analytical tool
Objectives Outcome
used to plan,
monitor, and
evaluate projects. Outputs Outputs

• It is logical Activities
linkages set out by
the planner(s) to inputs
connect a
project’s means Resources
with its ends.
 Related to Goal Malnutrition rates
Impact amongst young
children reduced

% of young children
Outcome Related to Objectives (or getting appropriate
Purposes) complementary food

X number of mothers
Related to Outputs
Output know about good
complementary food and
how to prepare that

Nutritional education to
Input Related to mothers on
Activities/Resources complementary food

*
 logical framework for M&E
Project description Indicators Source / mean of Assumptions / risks
verification

Goal
If the OBJECTIVES are produced, then this should
contribute to the overall GOAL
Objectives /
outcomes
If OUTPUTS/RESULTS are produced, then the
OBJECTIVES are accomplished

Deliverable outputs
If adequate ACTIVITIES are conducted, then
OUTPUT/RESULTS can be produced
Activities
If adequate RESOURCES/INPUTS are provided; then
activities can be conducted
 Project Monitoring Template
Objective Indicator Means of data Frequency Party
collection responsible
Module 5: Project Sustainability
 Introduction
• We live in a dynamic society where change and
innovation is the rule of the game
• This change is further made more imperative by
globalisation and its attendant ripple effects in
our domestic environment
• Change and innovation are usually implemented
by series of projects
• Most projects in Nigeria are initiated by Donor
agencies and Multinational corporations
 Introduction cont-
• It is observed that most of the projects started
by these donor agencies and multinational
corporations actually do not survive the initial
support leaving in its wake several abandoned
and unsustained projects
• It is to forestall the aforementioned scenario
that gave relevance to this paper
 What is Project Sustainability?
• A project can be defined as initiative to bring about
change. This is done in other to achieve specific
objectives, within a timescale, in a given context.
• Sustainability is about ensuring that a project
continues after the initial funding is over
• It means making a needed service a permanent part
of community resource
• It also means not starting all over with the next
grant
 Definitions cont
• Sustainability means that all the hard work and
resources committed to a project yield long
term value
• Project Sustainability therefore is the process
of ensuring that initiatives to bring service
change in a community continues to be a
permanent part of community resources
yielding value long after the initial funding is
over
Why are we concerned about sustainability?

• To contain enormous wastes associated with

unsustained projects.
• To avert the situation where the community is
exposed to a service and higher standard of
living only to be taken back to where they used
to be
• Reduce the Donor frustrations associated with
starting a project that will not be sustained
thereby discouraging them from doing more
 Why are we concerned about sustainability
Cont-
• Save peoples jobs and means of livelihood
• Check the incidence of theft and carting away
of abandoned project
• To avoid situating a non-functional project in a
land that could have been used for other
things like farming and other projects
 Causes of Abandoned Projects

• “White Elephant Projects”: These are projects

that gulp too much money but they do not
meet the real need of the community
• Projects that focus too heavily on the present
and neglect the future are dangerous. It is like
equipping schools with desktops and 2003
version of Microsoft word
 Causes of abandoned projects
• Underestimation of the project resource requirement. This is
usually the problem with projects that did not take off at all
or that took off but did not have enough to take it through
the first cycle of investment before delivering returns
• Projects that are being undertaken even though only a few
people in the community believe that they should be done.
These kinds of projects quickly start to feel like everyone’s
just standing around watching, and waiting for you to slip up
and prove them right.
• Projects whose key resource inputs and spares are imported
or not readily available locally
 Causes of abandoned projects
• Projects that were undertaken without
feasibility studies or need analysis before
commencement
• Projects that were undertaken without active
consultation before commencement and active
involvement of the stakeholders in the course
of implementation
• Poor communication of the intention of the
projects, budget and source of funding
 Goals of Sustainable Projects
• Integration with the community
– Accepted by the community
– Well used by the community
• Institutionalise into local systems
– Part of the larger network of services and
resources
– Draws some of the input and supplies from the
community
 Goals of project sustainability
• Extending project relationship and long term
networks
– Develop new partnership
– Strengthen and extend the existing ones
• Project evolution and development
– Specialize
– Diversify
– Strategies for effeciency
 Planning/Developing Projects for
Sustainability
• Project sustainability should be mainstreamed
from the development and planning stage
• Sustainability requires the following:
– That the new projects targets improving
individual and community wellbeing
– New projects should be part of the overall process
of positive change for the community
– It should move resources from area of lower to
higher productivity
Planning for Projects Sustainability cont-

– It requires effective governance process from the

outset: competence, accountability and
transparency
– It should have measureable growth indicators and
targets building community capital
– We need to focus on long term possibilities,
opportunities and challenges
– It requires thorough need/situation analysis
 Planning for Sustainability Cont
• Involve key stakeholders so that they can own
the project
– Letting them contribute part of the project
resources i.e land
– Employing some of the local hands: increasing
their stake holding
– Seeking their opinion in selecting project among
available options
Steps/Strategies for project Sustainability

• Step 1: Project Visibility: Ensure that people

are aware of the project from the beginning
– Promote the project
– Sensitize the community on the intended project
result
– Incorporate social marketing programmes for the
project
– Develop project leadership
Steps/ Strategies for project Sustainability

• Step 2: Involve the Community

– Seeking and sharing opinion
– Resource sharing and partnership
– Create opportunities for training and involvement in
the project
• Step 3: Diversify resource and funding base
– Seek financial support from multiple sources and levels
– Project can charge minimum user fees to sustain
maintenance
Steps and Strategies for project Sustainability

• Step 4: Let new Projects promote system change

– Let the people see how the current set up can be
bettered by the project at hand
– Let the people see the gaps the project fills in the
overall system
• Step 5: Institutionalise the project: Put things that
will entrench the project into the system for a long
time i.e. policies, service charter, incorporation
where need be, Board of Trustee, etc
 Module 6: Project
feasibility analysis
 Module 6 Outline
• What is project feasibility ?
• Reasons for project feasibility
• Difference between feasibility studies and
business plan
• Project risk matrix
• Scope of project feasibility
 What is Project Feasibility Analysis ?
• Project feasibility is the process of assessing and
questioning proposals before resources are
committed to a project
• It is a technical way of answering the question
as to whether a project is good idea or not.
And whether to go forward or to discard the
idea?
• It is a study that throws up the viability or
otherwise of a project.
Rationale for Undertaking Project Feasibility
Analysis
• It helps an analyst to be consistent and objective in
choosing projects
• Make sure their program benefits all sections of the
community
• Provide documentation to meet financial and audit
requirements
• Appraisal justifies spending money on a project.
• Appraisal is an important decision making tool.
• Appraisal lays the foundations for project execution and
delivery
 When do we Conduct Project Feasibility
Analysis
• Starting a new project business
• Expansion of an existing project
• Adding a project to an existing business
• Purchasing an existing project
• In recovering an abandoned project
 Benefits of Feasibility Analysis
• Gives focus to the project.
• Narrows the business alternatives.
• Identifies new opportunities.
• Identifies reasons not to proceed.
• Provides valuable information for “go/no go”
decision.
• Increases probability of business success by
identifying weaknesses, risks and challenges early
 Difference between Feasibility and Business
Plan
• Feasibility study conducted before decision to
proceed (go/no go).
• Business plan prepared after decision to proceed.
• Feasibility study provides investigative function.
• Business plan provides planning function.
• Feasibility study is usually undertaken by
organizations that are yet to commence business
while business plan is usually the lot of going
business concerns
Risk- control factor matrix
 Scope of Project Feasibility
• Technical feasibility : This aspect asks questions
as to whether the required technology, inputs
and resources are available to deliver on the
project? Here the key focus are:
– Determine facility needs.
– Suitability of production technology.
– Availability and suitability of site.
– Raw materials.
– Other inputs
 Scope of Project Feasibility
• Market Feasibility: This is where one assesses the
market potential and opportunities of the project
products. Among other things it seeks to
investigate whether or not the project product will
succeed in the market: key focus are:
– Industry description
– Industry competitiveness
– Market potential
– Willingness and capacity to pay
– Access to market outlets 
– Sales projection
 Scope of Project Feasibility
Financial/Economic Feasibility : This is where the
economic and financials of a project are
appraised to ascertain whether or not there will
be adequate return on investment: key focus are:
– Estimate the total capital requirements.
– Estimate equity and credit needs.
– Budget expected costs and returns.
– Cash flow analysis; And
– Determine whether the project is financially viable
or not
 Scope of Project Feasibility
• Methods of financial appraisal:
– Pay back period
– Net present value
– Internal rate of return
– Cash flow analysis
– Etc

• Social and Environmental Appraisal: This is where one

analyzes the social and environmental impact of the project in
the community. If the adverse effect of a project outweighs
the benefits then the project should be discarded.
 End of Course Assignment
• Critically analyse Ajaokuta steel plant project in
respect of the following:
– Genesis and rationale for setting up the project
– Factors that hindered the project hitherto
– The current situation analysis of the project
– Suggestions as to how to make it work or ways forward

Assignment to be submitted on or before the date of

examination