Hawassa University

School of Governance and Development

Studies

Project planning and management (GaDS 4133)

Course ECTS- 5 ECTS

 Policies and delivery tools
Policy:
• The deliberate plan of action to guide decisions and achieve
rational outcome(s).
• is determined by “politicians”
• is influenced by stakeholders and interests
• has no pre-determined shape, budget, objective, rules, time horizon

Program:
• is comprised of multiple projects that aim at outcomes and benefits (not
outputs). 
• It is a Policy delivery tool
• Budget is sharply allocated
• Timing and target population are defined
• No specific beneficiary is identified
Project:
• A project is comprised of individual tasks that aim at specified outputs or
deliverable products.
• has defined milestones and goals
• Has measured output, objective, costs and timetable.
• Is well defined, short-term, with manageable risk, and resource needs that
can be estimated with reasonable accuracy.

Plan:
• A plan provides a comprehensive detailed course of action directed at
achieving a specified end result. 
 Chapter One 

1.1 Defining the project

• The most authoritative definition is given in ‘Guide to Project

Management Body of Knowledge'. This guide states that a project is:

• ‘A unique set of coordinated activities, with definite starting and

finishing points, undertaken by an individual or organization to meet

specific objectives within defined schedule, cost and performance

parameters.’

• A project can also be defined as “a temporary endeavor undertaken to

create a unique product, service or result.”

 The project is completed when the goals and objectives of
the project are accomplished.
 Sometimes projects end when it’s determined that the
goals and objectives cannot be accomplished and the project
is canceled.
 Projects exist to bring about a product or service that hasn’t
existed before.
Ex: - Design and marketing of each model of a car
 Operations involve work that is :

 continuous without an ending date and often repeat the same process.
 routine, repetitive work typically requires doing the same or
similar work over and over.
Ex. Assembly of the cars
A project is successful when it meets or exceeds the expectations of the
stakeholders

Stakeholders are any one:

 Affected by activities or results of a project
 Who can influence, support, or resist the outcome
 With a personal, financial, or professional interest in the outcome
• Failure to address stakeholder issues often leads to project ‘failure’.
• Be certain to identify and meet with all key stakeholders early in the
project to understand all their needs and constraints.

1.2 Goals, benefits, nature, features and types of development project  

Goals
• Their meanings are sometimes blurred together, but there is some
differentiation between these terms.
• Goals and objectives are the purpose for undertaking the project, and
they describe the final result of the project.
• Goals describe the what it is you’re trying to do, accomplish, or produce.
• Goals and objectives should be stated in tangible terms.
• Goals and objectives can be combined and simply called goals.

Goals should follow the SMART rule:

 S-Specific: Goals should be specific and written in clear, concise, understandable

terms.

 M-Measurable: Goals should be measurable.

 A-Accurate: Goals should be accurate and should describe precisely what’s required.

 R-Realistic and tangible: Goals that are impossible to accomplish are not realistic
and not attainable.

 T-Time bound: Goals should have a time frame with an end date assigned to them.
 
• Broadly these objectives set out in the project brief, must meet three
fundamental criteria:
The project must be completed on time;
The project must be accomplished within the budgeted cost;
The project must meet the prescribed quality requirements.

Nature
• Projects are unique in nature

• They do not involve repetitive processes.

• Every project undertaken is different from the last, whereas

operational activities often involve undertaking repetitive
(identical) processes.
Project Characteristics
• The main project characteristics are temporariness, individuality
of the product or service, complexity, and uncertainty.

•Temporariness: means that all projects present a defined

start and end; they are events with a limited duration,
established in their purpose.

•The individuality: means the accomplishing of something

not done before.
Based on these two main characteristics, the others can be described as follows:

Non-repetitive enterprise
• A project is an event that is not part of the company’s routine.

• It is something new for the people who work on it.

Clear and logical sequence of events

• Projects are characterized by logically linked activities

• Many times, the completion of one project coincides with the beginning of another

Beginning, middle, and end

• Every project follows a certain life cycle, which means it has a temporary nature.

• A project without completion is not a project, but a routine activity.

Clear and defined objective
• Every project has well-defined targets and results to be achieved on its
completion.
Conducted by people
• The fundamental core of any project consists of people.

• Without them, the project does not exist, even when modern management
control tools are available.

Projects use resources

• Every project uses resources, specifically allocated to certain works.

Pre-defined parameters
• Every project requires the establishment of rates for time, costs, personnel,
material, and equipment involved, as well as the desired quality of the project.
Types of project
• Not all projects are the same and vary on a number of different
elements that make each project individual.
• It can be classified as the following:

Economic projects
•These are projects that aim at generating income.

• Eg:
• cash crop farming,
• business concerns like shop keeping, an industry, and
• a commercial farm.
Social Projects
• These are projects that aim at providing social services and
do not earn a direct income.
• Oriented at the improvement of the quality of life of people.

Eg. projects on education, health, water and sanitation,

road construction and maintenance.

Private Projects
• These are projects that belong to and are managed by
individuals or groups of individuals.
• Financing comes from businesses or private incentives.
Public/Community Projects
• These are projects that are community owned and benefit society
(community) as a whole without exclusion.
• like water, electricity, postal services but most of the public utilities have
now been privatized by the government.

Local or National Projects

• Local projects are those projects which are initiated or funded by a given
country or local authority.
Ex. district, sub-county, city municipality.

• National projects on the other hand are projects common to a Country/Nation

or cover the whole country.

Ex. Polio immunization, national road construction network.

International Projects
• These are projects that involve or are implemented by two or more countries.
They may be referred as:
• Bilateral - involving one or two countries.

• Multi-lateral- Eg. ADB (African Development Bank)

Government Projects
• These are projects initiated, planned and implemented by Government.

Ex. Poverty Alleviation Project (PAP), Credit institutions, etc.

Non-Governmental Projects
• These are projects, initiated, set up and implemented by Non-
Governmental Organizations (NGOs) both indigenous (Local) and foreign
(or international).
Large scale (Macro) Project
• Also referred to as Macro Projects, they are projects which are:

– large in size and scope,

– require heavy initial investment,

– employ many people of diverse skills,

– have high capacity of production

Ex. hydroelectric power plant (HEP); sugar processing factory, road construction, etc.

Relief/Humanitarian Assistance Projects

• These are projects that aim at redressing or alleviating the social or natural calamities as result
of floods, storms, earthquakes, famine, drought, war, and epidemic outbreaks.

• These projects give assistance to people on humanitarian grounds and are funded by
humanitarian organizations.
Rehabilitation Projects
• Also referred to as reconstruction projects
• Examples of such projects include World Vision Centre for the
war traumatized children, etc.

Developmental Projects
• These are projects that add to the existing stock of the community.
• They bring about qualitative and quantitative change.
• Apart from relief projects, the remaining categories of projects
are development-oriented projects.
• Most of this type of projects are indirectly productive projects.
In the other way based on objectives Projects can be classified as
experimental project, pilot project, demonstration project and
production project.
• Experimental project: it attempts to address a problem in an
innovative manner using the alternative approaches.
Ex: crop innovation.

• Pilot Projects: it strengthens the applicability of the experience

derived from experimental projects to local level.
•test the replicability of the project to other areas and
the other beneficiaries.
•Demonstration project: it is basically a forum to exhibit new
techniques.
•Production projects: it has the role of increasing productivity,
and a high degree of replicability.

Projects can also be classified in to three depending on how new

resources are committed to them.

1. New investment project

•It is a brand new project and includes new organization.
• It is financially independent of existing organization.
2. Expansion project
• It includes or involves repeating or extending of an existing
economic activity with the same output, technology and
organization.

3. Updating project
• It involves replacing or changing some elements in an existing
activity without major change of output, but within the context of
an existing reformulated organization.
 Note that projects can be categorized based on different factors.

For example:

1. Time: projects of short term and long term duration.

Ex: hydroelectric power project--------long term project
annual crop project-------------------short term project

2. Types of products
Projects producing goods.------Ex. Leather factory
Projects producing services-------Ex. Telecommunication
Projects producing knowledge----Ex. Research station
Projects producing information-----Ex. Mineral exploitation

3. Scope: projects catering to regional, national and international market.

4. Location: rural and urban projects.
Ex. Urban housing development project

5. Sector: industrial project, agricultural project, transport project,

etc.

6. Technology: Capital, labor, energy intensive technology

7. Nature:
• Independent project: Ex. hospital, hydroelectric power project
• Complementary project: Ex. airport project: it has many
projects like airstrip project, airport services project; Motel etc.
• Cont’

1.3 Concepts of Planning

1.3 Concepts of Planning

What is a plan?
• It is a detailed proposal for doing or achieving something

• It is an intention or decision about what one is going to do

• It is a detailed map or diagram

• A scheme, program, or method worked out beforehand for the

accomplishment of an objective.
• A systematic arrangement of elements or important parts; a
configuration or outline
• A method of achieving something that you have worked out in detail
beforehand.
Examples of plan:

• Lesson plan (daily, weekly, monthly, quarterly, yearly)

• Business plan

• Market plan

• Project plan, etc.

Planning

• It is a purposeful way of looking at the future with the intent to shape it.

• Planning is the act or process of making or carrying out plans, the established goals,
procedures and policies.

• The most fundamental function of management like organizing, staffing, directing,

and/or controlling.

• Functions of management will not take place unless there is planning function
beforehand.
Planning involves:
• Determination of objectives of the business
• Formulation of programs and courses of action for their
attainment
• Development of schedules and timing of actions

• Assignment of responsibilities for their implementation

Types of Plans
• Three major types of plans can help managers to achieve their
organization's goals:
• Strategic plan,
• Tactical plan and
• Operational plan.

• In addition to these three types of plans, managers should also

develop a contingency plan in case their original plans fail.
Strategic Plan 
• It is an outline of steps designed with the goals of the entire
organization as a whole in mind, rather than with the goals of specific
divisions or departments.

• Strategic planning begins with an organization's mission.

• Strategic plans look ahead over the next two, three, five, or even more
years to move the organization from where it currently is to where it
wants to be.

• Top management's strategic plan for the entire organization becomes

the framework and sets dimensions for the lower level planning.
Tactical Plan
• Tactics are the means needed to activate a strategy and make it
work.
• Tactical plans are concerned with shorter time frames and
narrower scopes than are strategic plans.
• These plans usually span one year or less because they are
considered short‐term goals.
• Long‐term goals, on the other hand, can take several years or
more to accomplish.
• Normally, it is the middle manager's responsibility to take the
broad strategic plan and identify specific tactical actions.
Operational plan 
•is one that a manager uses to accomplish his or her job
responsibilities.
• support tactical plans
• can be a single‐use plan or an ongoing plan.
A. Single‐use plans

• Apply to activities that do not recur or repeat.

• A one‐time occurrence, such as a special sales program
• A budget is also a single‐use plan because it predicts sources
and amounts of income and how much they are used for a
specific project.
B. Continuing or ongoing plans 
• Are usually made once and retain their value over a period of
years while undergoing periodic revisions and updates.

The following are examples of ongoing plans:

• A policy provides a broad guideline for managers to follow
when dealing with important areas of decision making.
• A procedure is a set of step‐by‐step directions that explains how
activities or tasks are to be carried out.
• A rule is an explicit statement that tells an employee what he or
she can and cannot do.
Contingency Plans
• Intelligent and successful management depends upon a constant
pursuit of adaptation, flexibility, and mastery of changing
conditions.
• Strong management requires a “keeping all options open”
approach at all times — that's where contingency planning comes
in.
• It involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate
because of changing circumstances.
Project Plan
• is a formal, approved document used to guide both project execution and project
control.

• is the work plan, not the work.

• is a definition of needed work and resources.

Primary uses:
•to document planning assumptions and decisions

• to facilitate communication among stakeholders

• to document approved scope, cost, and schedule baselines

•summary or detailed statement of how and when project objectives are to be

achieved
•showing the major products, milestones, activities and resources required on the
project
Project Planning
 Is a process that creates a work plan for addressing those problems
and attaining the goals.

 Identifies specific community problems that stand in the way of

meeting community goals.

 Describes measurable beneficial impacts to the community that

result from the project’s implementation.

 Determines the level of resources or funding necessary to

implement the project
Why Project Planning? (creating a work plan )
To reduce uncertainties.
To increase the effectiveness and efficiency of the operation
To identify and work towards a common goal.
To establish a means of project monitoring and control
To provide detail and structure to project work plans
 To establishes a way to be sustainable.
There are nine steps involved in project planning:
1. Describe the ultimate goal and purpose of the project.

2. Path (strategy) to be followed and actions to be taken to reach the aims and

objectives.

3. Schedule: this is a work plan showing when individuals/group activities will start

and end.

4. Budget (expenses) involved in order to reach the specified objectives.

5. Estimate: when each activity will take place.

6. Organizing and assigning specific people to a specific objective as well as the

specific responsibilities for each task.

7. Policy and general guidance for decision making and individual actions.

8. Strategy and detail plan to execute the actions.

9. Standards and determining qualities for each action.

 The Twelve W’s of Project Planning
Planning is obtaining answer to the question:
1. What are you planning to do?
2. Why do you want to do this project?
3. When and where will the activity take place?
4. Who will benefit from the project?
5. What staff members will need to approve the project?
6. What funds are needed?
7. When will the basic planning be done?
8. What committees are necessary?
9. What kind of publicity is needed?
10. Who deserves a special thank you?
11.Was the project worthwhile?
12. What’s next? Where do we go from here?
1.4 Programs vs. projects: how do they differ?

• Programs are groups of projects that are managed using the same
techniques in a coordinated fashion.

• Sometimes, programs include aspects of ongoing operations as

well.
 Project Program
 is a series of coordinated and
 are the building blocks of programs
related projects that continue
Difference  are usually of short term duration. over extended time
 are often divided into smaller
 are made up of multiple
components or activities projects
 It is specific in purpose
 Has specific area/geographic unit  Has got general objectives
 May not have specific area
 Has specific target groups  May not have specific target
 Has clearly determined and allocated groups
fund  May not have clear and
detailed financial allocation
 Has specific lifetime.  May not have specific time of
ending.

Similarity  Has purpose/objectives

 Require inputs (financial, manpower, material, etc.)
 Generate outputs (goods, and services)
 Operate over space and time.
Program Project

• Feeding of malnourished
Community Health & children, dental and medical,
Sanitation garbage disposal, provision
of latrine, health awareness
activities , trainings /seminars
on health

• Environmental Protection • Waste management, planting

trees, protection of forests &
wildlife, protection of water
ways and sources
1.5 Defining the project management
Management may be defined as:
• Taking control, taking charge or directing, getting things done from the
available resources.

• Process of planning and decision making, organizing (human, financial,

physical and information resources) and leading and controlling to
achieve organizational goals in an efficient and effective manner.

Project management:

• is a process that involves several things including planning, putting

the project plan into action, and measuring progress and
performance.
Official definition of project management:

• the application of knowledge, skills, tools and techniques to

project activities to meet project requirements.

• is everything you need to make a project happen on time and

within budget to deliver the needed scope and quality.

• is accomplished through the application of 5 Process Groups:

• Initiating,
• Planning,
• Executing,
• Monitoring and controlling, and
• Closing”.
Aim of project management:
• to achieve successful project completion with the resources
available.

A successful project is one which:

•has been finished on time
•is within its cost budget
•performance standard which satisfies the end user.
• Benefits of project management:

•Avoids surprises during the execution works

•Allows the development of competitive advantages and new
techniques
•Anticipates problematic situations, so preventive and
corrective actions can be taken before such situations
become actual issues
•Makes the budget available before the expenditures start

•speed up decisions, as the information is structured and

made available
• Increases management control on all phases to be
implemented, thanks to previous detailing
• Enhancing the project’s adaptation capabilities
• Optimizes the allocation of necessary people, capital equipment,
and material
1.6 Project Environment (Project Context)
• Projects are influenced by a multitude of factors which can be
external or internal to the organization responsible for its
management and execution.
• These external or internal influences are known as the project
context or project environment.
• The external factors:
• the client or customer,
• various external consultants,
• contractors, suppliers, competitors, politicians,
• national and local government agencies,
• pressure groups,
• the end users and even the general public.
The Internal influences include:
• the organization’s management,
• the project team,
• internal departments, (technical and financial) and
• possibly the shareholders.
• All these influences are neatly encapsulated by the acronym
PESTLE.
• The following figure illustrates the project surrounded by its
external environment:
 Projects are powerful means or policy instrument to achieve the
development objectives.
 However, it would be a mistake to consider project as the only.
 There are multiple of economic policy instruments by which
development objectives can be reached which include:
•Taxation and other fiscal instruments

•Monetary and credit policies

• Trade regulation and price control
•Employment and wage policies, etc.
 The most important point is to use one or more of them in a way
that the objective is achieved in the most efficient manner.

Example
 In countries where public ownership is large using project
through pricing inputs/outputs to income distribution (project
planning is the best means)
 where private property is large, fiscal policy (progressive
taxation works best to income distribution).
Project Success Criteria
• The most important of these are given below:
• Clear objectives and project brief agreed with client
• Good project definition
• Good planning and scheduling methods

• Accurate time control and feedback system

• Rigorous performance monitoring and control systems
• Rigorous change control (variations) procedures
• Adequate resource availability (finance, labor, plant, materials)

• Full top management and sponsor support

• Competent project management
• Tight financial control
• Comprehensive quality control procedures
• Motivated and well integrated team
• Competent design

• Good contractual documentation

• Good internal and external communications
• Good client relationship

• Well-designed reporting system to management and client

• Political stability.
Good Lunch!