Project Cycle Management

A logical sequence in which the projects are

identified, prepared, approved and implemented
is called project cycle.

It is an approach in project management used to

guide management activities and decision-
making procedures during the life-cycle of a
project, from the first idea until the last ex-post
evaluation.

1
 Project Cycle Management

Within all institutions the cycle shares three

common themes:

The cycle defines the key decisions, information

requirements and responsibilities at each phase;
The phases in the cycle are progressive each
phase needs to be completed for the next to be
tackled with success.
The cycle draws on evaluation to build experience
from existing projects into the design of future
projects.

2
 Stages in PCM

There are eight broad stages of project cycle:

Project Identification
Project Preparation
Project Appraisal
Project Approval
Project Implementation
Project Monitoring
Project Completion
Project Evaluation

3
 Project Cycle

Evaluation Identification

Completion Preparation

Appraisal
Monitoring

Implementation Approval

4
Project Cycle

5
 Project Identification
To determine demand for projects from
communities or stakeholders perspective,
three key elements are involved;

1. Needs Analysis;
2. Situation Analysis; and
3. Stakeholders Analysis.

6
 Project Identification

At the public sector level the following provides

the basis for project identification;

Sector Surveys;
Development Plans
Immediate Nature/Calamity Projects
Expansion of On-going Programmes;
Elected Representatives

7
 Project Formulation

Projects are usually prepared by the executing

agencies and it consists of two stages:
Feasibility Study

Project Document

Important Considerations:
Survey of the area

Availability of resources

Yearly allocation

Capacity of Implementing agency

8
 Project Appraisal

Critical examination of the project from all

aspects is called appraisal.

Analysis of prospective costs and benefits that

leads to desirability for committing resources.

It is carried out at two stages:

Internal Appraisal

External Appraisal

9
 Development Forums

1. National Economic Council (NEC)

2. Executive Committee of National Economic
Council (ECNEC)
3. Central Development Working Party (CDWP)
4. Provincial Development Working Party (PDWP)
5. Departmental Development Working Party
(DDWP)
6. District Development Committee (DDC)

10
 APPROVAL FORUMS SETTLED AREAS
Chaired By Forums Mandate/ Financial Power

All Development
Plans & Planning
Prime Minister NEC Policies
Projects Exceeding
Rs 1000 M
Prime Minister
Powers Fed. Projects up to 3000
ECNEC M
Delegated to
(Prov. Projects Rs.3000 M
Finance
involving F/Aid or
Minister Federal funding
Dy. Chair PC
Federal
CDWP
Project up to Rs. 5000 M

Additional Chief Clearance of Projects

Secretary, Planning PDWP requiring approval of
CDWP/ECNEC
& Development, KPK

Secretary of a DDWP/DDDC Provincial / District

Department / DCO Projects up to Rs. 60 M
 Project Implementation
Project implementation entails intense activities
and a variety of physical work.

Implementation of activities and financial

management should be undertaken in accordance
with all the established guidelines, procedures
and regulations guiding the project.

Implementation of the project is the responsibility

of executing agencies through;
Departmental/Organization Staf

Project Staf

12
 Project Monitoring
It is the systematic review of development
projects at appropriate intervals during
implementation through well defined indicators.
Benefits of Monitoring
Efective Implementation

Timely Completion

Completion within approved cost

Types of Monitoring
Financial Monitoring

Physical/Quantitative Monitoring

Qualitative Monitoring

13
 Project Monitoring

Levels of Monitoring
Internal Monitoring

External Monitoring

Key Monitoring Indicators

Allocation of Funds

Release of Funds

Time Scheduling

Technical Parameters

Physical Progress

14
 Project Completion
It is a report submitted immediately after the
completion of the project. Major emphasis of the
report is on the following:

Achievements against Targets/Results of the

project;
Actual expenses vs. budgeted for the project;
Reasons for:
Under achievement if the desired targets are not achieved;
Delay if the project is not completed within stipulated time.

15
 Project Evaluation

Project evaluation examines all aspects of the

project design and assess the overall progress
towards the ultimate objectives.

Types of Evaluation
Ex-Ante Evaluation

Mid Term Evaluation

Ex-Post project completion evaluation

16
 Monitoring vs Evaluation

Monitoring Evaluation

Who? Internal management Usually incorporates external inputs

responsibility all levels

When? Ongoing Periodic mid-term, completion, ex-

post

Why? Check progress, take remedial Learn broad lessons applicable to

action, update plans other programs/projects, policy
review, etc
Focus on Inputs, activities, outputs Results, purpose, overall objective

17
 Monitoring vs Evaluation

Monitoring Evaluation
Routine collection of Analyzing information
information Ex-post assessment of
Tracking effectiveness and
implementation impact
progress Confirming project
Measuring efficiency expectations
Measuring impacts
Is the project doing
things right ? Has the project done
the right things?
18
 Benefits of PCM

PCM is an important function of project

management and can assist local
organizations to learn from past
experiences, improve decision making,
streamline communication between
various stakeholders and above all how far
the objectives of the project have been
achieved.

19
 Benefits of PCM

When PCM is applied efectively, the following

benefits can be realized;

Goal/Objective Oriented: Implementation of

projects will be in accordance with predetermined
objectives and not on the whims of individuals
Coordinated Project Management: Project
execution will be coordinated and overseen by
appointed project managers, and not by those
randomly picked without proper consideration.

20
 Benefits of PCM

Sound & Objective Appraisal: The project will be

designed and appraised based on sound research
and feasibility criteria, and not on voting and
consensus which does not capture the viability
issues
Long Term Planning: PCM improves long-term
planning because the policy setting stage includes
strategic review of long term goals and objectives;
Increased Accountability. There will be increased
accountability for results because individuals and
teams will be assigned specific results that they
must deliver;
21
 Benefits of PCM
Standard Methods and Procedures. As opposed
to a mixed up process of managing a project, the
PCM approach introduces a standard method and
procedures for running projects stage by stage,
which provides stakeholders with a road map of
expected results, at each stage of the process;

Increased Efficiency in Planning and Use of

Resources. Through the PCM method, project
resources are planned for before the project is
executed, and adjustments are made during project
implementation;
22
 Benefits of PCM

Stakeholder Ownership. This is enhanced

because PCM is a participatory process;
Formal Documentation. PCM requires
documentation of procedures, processes and
results. This ensures that there is an accurate
record of information for every project step;
Enhanced Monitoring and Evaluation. PCM
sets in place a process of monitoring based on
agreed milestones. Without PCM, it is hard to
create an efective monitoring framework and
results are hard to establish

23