BA 4618 PROJECT MANAGEMENT

SESSION 1

Project Management and Project Cycle

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What is a Project?
Is BA 4618 Project Management Course a project?
Why? Why not?

What may be a project?

Why?

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Origin
The word project comes from the Latin word projectum from projicere, "to throw something forwards" which in turn comes from pro-, which denotes something that precedes the action of the next part of the word in time (paralleling the Greek ) and jacere, "to throw". The word "project" thus actually originally meant "something that comes before anything else is done".

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Definition of a Project
Project is -1
a temporary endeavor undertaken to create a unique product, service, or result. (PMI)

Project is -2
a series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget. (EU)

Project is -3
a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. (Course Book)
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Characteristics of a Project Major Characteristics of a Project are:

an established objective. a defined life span with a beginning and an end. (Temporary) across-the-organizational participation. (Interdependencies) doing something never been done before. (Unique) specific time, cost, and performance requirements.

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Comparison of Operational Work with Projects

Routine, Repetitive Work
-Taking class notes -Daily entering sales receipts into the accounting ledger -Responding to a supplychain request

Projects
-Writing a term paper -Setting up a sales kiosk for a professional accounting meeting -Developing a supply-chain information system -Writing a new piano piece -Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs
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-Practicing scales on the piano

-Routine manufacture of an Apple iPod

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Programs versus Projects

Program Defined
A group of related projects designed to accomplish a common goal over an extended period of time. Each project within a program has a project manager.

Program Management
Process of managing a group of ongoing, interdependent, related projects in a coordinated way to achieve strategic objectives. Example:
Project: completion of a required course in project management. Program: completion of all courses required for a business major.
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Comparison: Project, Program & Portfolio

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What is a Project?
Is BA 4618 Project Management Course a project?
Why? Why not?

What is Southeastern Anatolia Project?

A project? A program? Repetitive work?

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What is Project Management ?

Project management is the application of knowledge, skills, tools and techniques to project activities, to meet project requirements.

Project management is accomplished through the application and integration of the project processes of initiating (defining), planning, executing, monitoring, and closing (delivering).
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Managing a Project
Managing a Project includes;
Identifying requirements, Establishing clear and achievable objectives, Balancing the competing demands for quality, scope, time, and cost, Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders.

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Project Life Cycle

Initiating/ Monitoring

Closing/

PROJECT CHARTER MANAGEMENT PLAN

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Stages of a Conventional Project

Slow beginning Buildup of size Peak Begin a decline Termination

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The Challenge of Project Manager

The Project Manager
Manages temporary, non-repetitive activities and frequently acts independently of the formal organization.
Marshals resources for the project. Is linked directly to the customer interface. Provides direction, coordination, and integration to the project team. Is responsible for performance and success of the project.

Must induce the right people at the right time to address the right issues and make the right decisions.

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The Importance of Project Management

Factors leading to the increased use of project management:
For Private Sector
Compression of the product life cycle Rapid development of Third World and closed economies Knowledge explosion Sustainability (planet, people, profit) Corporate downsizing Global competition/Increased customer focus Coordinating small projects

For Public Sector

Growing demand for customized supplies and services Increased reliance on contractors for performance of mission critical functions The interference of international institutions
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Ideal Business Environment for PM

Project management is ideally suited for a business environment requiring:
Accountability Flexibility Innovation Speed Continuous improvement

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Pros and Cons of PM

Companies have experienced:
Better customer relations Shorter overall delivery times Lower costs and higher profit margins Higher quality and reliability Higher worker morale
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Companies have also experienced :

Greater organizational complexity Increased likelihood of organizational policy violations Higher costs More management difficulties Low personnel utilization
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Integrated Project Management Systems

Problems resulting from the use of piecemeal project management systems:
Do not tie together the overall strategies of the firm. Fail to prioritize selection of projects by their importance of their contribution to the firm. Are not integrated throughout the project life cycle. Do not match project planning and controls with organizational culture to make appropriate adjustments in support of project endeavors.
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Dimensions of the Project Management Process

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Project Cycle - WB

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Country Assistance Strategy

CAS approach aims boosting development. A national strategy is prepared by the country, creating a framework for donors to better co-ordinate and align their programs behind national priorities. The Bank and other aid agencies then align their assistance efforts with the country's own strategy. The CAS is produced in co-operation with the government and interested stakeholders. The preparation of the CAS may draw on analytical work conducted by the Bank or other parties on a wide range of economic and social sectors, such as health, education, agriculture, public expenditure and budgeting, fiscal management, or procurement, among others.
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Identification
Bank teams work with the government to identify projects which can be funded as part of the agreed development objectives. Once a project has been identified, the Bank team creates an internal document that outlines the basic elements of the project,
proposed objective, likely risks, alternative scenarios to conducting the project, a likely timetable for the project approval process.

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Preparation
Preparation is driven by the country that the Bank is working with and can take anything from a few months to three years, depending on the complexity of the project being proposed. The Bank plays a supporting role, offering analysis and advice where requested. During this period, the technical, institutional, economic, environmental and financial issues facing the project will be studied and addressed. An assessment is required of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable.
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Appraisal
Bank staff review the work done during identification and preparation, often spending three to four weeks in the client country. They prepare for bank management either Project Appraisal Documents (investment projects) or Program Documents (for adjustment operations) and the Financial Management team assesses the financial aspects of the project.

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Negotiation and Approval

After the appraisal the Bank and the country negotiate and come to an agreement on the terms and conditions of the loan. Project Appraisal Document (PAD) or the Program Document (PGD) are submitted to the Bank's Board of Executive Directors for approval. The appropriate documents are also submitted for final clearance by the borrowing government which may involve ratification according to the country's legislation. Following approval by both parties, the loan agreement is formally signed and the loan declared effective, or ready for disbursement
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Implementation and Supervision

The implementation of the project is the responsibility of the borrowing country, the Bank is responsible for supervision. Once the loan is approved, the borrowing government, with technical assistance from the Bank, prepares the specifications and evaluates bids for the procurement of goods and services for the project. The Bank reviews this activity to ensure that its procurement guidelines have been followed. If they have, the funds will be disbursed. The Bank's Financial Management Team maintains an oversight of the financial management of the project including periodically requiring audited financial statements
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Implementation and Completion

At the end of the loan disbursement period a completion report identifying accomplishments, problems, and lessons learned is submitted to the Bank Board of Executive Directors for information purposes.

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Evaluation
Following the completion of a project, the Bank conducts an audit to measure its outcome against the original objectives. The audit entails a review of the project completion report and preparation of a separate report. Both reports are then submitted to the executive directors and the borrower. They are not released to the public.

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Project Cycle - WB

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Project Cycle - EU

PROGRAMMING Programlama

EVALUATION AND Deerlendirme & AUDIT Denetim

IDENTIFICATION Tanmlama

IMPLEMENTATION

Uygulama

n FORMULATION deerlendirme

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Programming
The situation at national and sectoral level is analyzed to identify problems, constraints and opportunities. Socio-economic indicators and national priorities are reviewed Purpose: To identify and agree on the main objectives, and sectoral priorities, To provide a relevant and feasible programming framework within which projects can be identified and prepared For each of such priorities strategies will be formulated that take account of the lessons of past experience
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Identification
Ideas for projects and other actions are identified and screened for further study.
Such study involves consultation with the intended beneficiaries of each action Analysis of the problems they face Identification of options to address such problems

A decision then can be made on the relevance of each project idea, and on which ideas should be further studied during formulation phase

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Formulation
Relevant project ideas are developed into operational project plans Beneficiaries and other stakeholders participate in the detailed specification of the project idea that is then assessed for feasibility and sustainability
Feasibility: whether it will succeed Sustainability: whether it will generate long term benefits

A decision is made on the basis of such assessment whether to draw up a formal financing proposal and seek funding for the project

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Financing
Proposals are examined by the competent authority to decide whether to finance such projects Funding agency and partner country agree on the modalities of implementation and formalize these in a legal document which sets out the arrangements by which the project will be funded and implemented

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Implementation
The project is mobilized and executed
Management and supervision Procurement and contracting Monitoring Risk management Financial management Testing and closure

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Monitoring and Evaluation

Monitoring
To assess implementation performances and achievements in order to take corrective actions

Evaluation
To assess the impact of the project, if objectives have been achieved, and to learn lessons by identifying shortcoming and mistakes that occurred during implementation, in order to improve the execution of future projects

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Project Cycle Management - EU

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