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Effective Project Management_handout

  1. 1. 2013 RI CONVENTIONEffective Project Management(& The Maji Mazuri Project)Fred Abrams, PMP, CPL– Rotary Club of Dayton Ohio USARakhee Kantaria– Rotary Club of Muthaiga, Nairobi, Kenya
  2. 2. 2013 RI CONVENTIONSession Objective• Understand how to apply the international(ISO) standards for effective projectmanagement to volunteer-run Rotaryprojects:– Planning for control of cost and schedule– Managing risks that can derail the project• Become the best possible steward of thedonated money you are spending.
  3. 3. 2013 RI CONVENTIONSession Outline• Defining the project• What Rotary says about project management• The ANSI/ISO Standard for project management• Managing the Maji Mazuri Project• Lessons Learned
  4. 4. 2013 RI CONVENTIONThe Project Scope• 1997 Visit To Kenya By Dayton Rotary– Goal: A Project to Help Vulnerable Children– Beneficiary Organization – Primary host for visit– Picked a Host Nation Rotary Club Partner– Defined the project• Five Years and Three Rotary Matching Grants inExecution– Total (RI and non-RI) Budget: $368,217• RI Grant Content: $211,295• Outside of RI Grants: $156,922– Managed as one consolidated project
  5. 5. 2013 RI CONVENTIONThe ChallengeWhat We Found and How to help?Vulnerable Children– AIDS Orphans Surviving inThe Mathare Valley Slum
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  7. 7. 2013 RI CONVENTIONHow To Help ?• Changing The Slum?– Overwhelming Challenge• Helping The Children?– Rescue Kids and Establish A Sanctuary• Safe and Self-Sufficient– Provide Quality Healthcare and Education
  8. 8. 2013 RI CONVENTIONSome Project Highlights• Visit By RI President Banerjee– Dec 2011– First project featured in hisopening plenary commentsin Bangkok (June 2012)• Feature in “The Rotarian”March 2012• Visit by RI President Tanaka –July 2012
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  10. 10. 2013 RI CONVENTIONRotary Foundation Guidance• RI Document 605A– “Communities In Action – A Guide toEffective Projects”– Top Level Guidance• RI Document 1000 – new in 2012– “Grant Management Manual”– Focus on new “Global Grants”– Chapter 3 is project management– Sustainability Required
  11. 11. 2013 RI CONVENTIONRI Document 605A(A Guide To Effective Projects)• Chapter 2 – Choosing A Project– Fit the overall interest of the club– Sustainable: long term solutions to chronic problems• Chapter 3 – Making A Plan (4 pages)– Scope appropriate to club’s resources– Project Work Plan & Detailed Budget• Tasks, responsibilities, resources, budget, timing• Chapter 4 – Taking Action– Raising Funds– Managing Activities (especially managing volunteers)
  12. 12. 2013 RI CONVENTIONRI Document 1000• Chapter 1 – Planning a Global Grant Project– Develop Project Plan (Sustainable Solutions)– Financial Management Plan (Budget/Financing)• Chapter 3- Implementing, Monitoring, Evaluating (2 pages)– Monitor how closely you are following the plan, adjust– Evaluate against goals– Disciplined financial recordkeeping– Have technical reviews and site visits
  13. 13. 2013 RI CONVENTIONWhat Does Rotary mean by Sustainability?• Economic– Self-Sufficient Operations• Environmental– Local resources and Low Pollution• Cultural– Include local leaders and diverse cultures• Social– Training to prepare workers, men and women
  14. 14. 2013 RI CONVENTIONInternational StandardFor Project Management• The Project Management Institute (PMI)– Source of ANSI/ISO Standard (www.pmi.org)– Guide to The Project Management Body of Knowledge– PMBOK® Guide (587 Pages)– Training and International Certification in the standards(Project Management Professional –PMP)• Some Key Elements of Effective ProjectManagement• Rigorous Requirements Process and Scope Definition• Rigorous planning considering dependencies and risks– Based on, and controlled by a Work BreakdownStructure-WBS• Project Scope is controlled, Changes are analyzed
  15. 15. 2013 RI CONVENTIONThe Work Breakdown Structure -WBS• Foundation of Effectively Planning, Executingand Controlling Projects• Logical Grouping of the work to be done– All work on a specific element is under one heading– Not necessarily a timeline listing• Costs, Schedules, Responsibilities and Risks aretied to individual lines in the WBS– Work Packages – each with a budget and risk analysis– Dependencies among WBS activities is depicted• Schedule reflects dependencies
  16. 16. 2013 RI CONVENTIONWhy Projects Fail - Two Key Reasons• Planning did not consider risks to cost andschedule and adjust accordingly• Once planned, the scope of the project wasnot controlled in a disciplined manner– Changes made without re-planning andmodifying the WBS and its work packages
  17. 17. 2013 RI CONVENTIONDefining Our Project• The Beneficiary Organization– Maji Mazuri: 20+ years of success– Head-start Center and Micro-enterprise in the Slum– Owned Farmland in countryside SW of Nairobi• Ambitious Goal– Create a self-sufficient sanctuary for AIDS orphansrescued from the slum• Energy, Water and Food Self-Sufficient• Cost Reducing and Revenue Generating Business Model– Farm industry and a Farm industry Building• Provide Health Care and Education– Long Term: Build and equip a clinic and school
  18. 18. 2013 RI CONVENTIONDetermining The Scope - Sustainability• Cannot depend on charity to operate site• Economic: Reduce Costs of Operation– Diesel Generator for electric to pump water• Replace with Wind and Solar (Environmental Sustainability)– Cooking Fuel – wood and charcoal• Replace with bio-gas (Environmental Sustainability)– Food for children – extensive purchases• Increase on-site food production– Barn and Animals– Irrigation (efficient micro-drip)– Assure adequate water (pumping and rainwater harvest)– Greenhouses for high yields
  19. 19. 2013 RI CONVENTIONSustainability• Develop Sources of Revenue– Water Sales– Farm Product Sales– Farm Services Sales
  20. 20. 2013 RI CONVENTIONSelf-Sufficiency: Emphasis on Sustainability• Food Self-Sufficiency– Needs Water – Need Water Self-Sufficiency• For People – Water Purity Essential• Crops and Animals – Efficient Use Essential– Need Barn and Greenhouses– Needs Cooking Fuel –Need Self-Sufficiency• Dependence on wood and charcoal expensive– Needs Cooking and Serving Equipage– Needs Refrigeration• Needs electricity
  21. 21. 2013 RI CONVENTIONOur Top Level WBS• 1.0 Management• 2.0 Energy Self-Sufficiency• 3.0 Water Self-Sufficiency• 4.0 Facilities and Infrastructure• 5.0 Food Self-Sufficiency• 6.0 Child Health• 7.0 Education & Training• 8.0 Commerce (Revenue Generation)
  22. 22. 2013 RI CONVENTIONManagement Dimensions• 1.1 Project Management– 1.1.1 Project Plans– 1.1.2 Project Meetings• Local (Dayton)• On Site (Kenya)• 1.2 RI Grant Management– 1.2.1 Grant Proposals– 1.2.2 Grant Reporting• 1.3 Financial Management– 1.3.1 Fund Raising– 1.3.2 Budget Execution• 1.4 Website Management
  23. 23. 2013 RI CONVENTIONOur WBS – Detail Examples• 2.0 – Energy Self-Sufficiency– 2.1 Electrical• 2.1.1 Wind Turbine• 2.1.2 Solar Cells• 2.1.3 Charge Controller and Battery Bank• 2.1.4 Inverter• 2.1.5 Power Distribution• 2.1.6 Building wiring and lighting– Existing Structures– New Barn– New Farm Industry Building– New Clinic– New School– 2.2 Fuel• 2.2.1 Animal Bio Gas Plant– Anaerobic Digester– Bio Gas Distribution– Bio Gas Stoves• 2.2.2 Bio Gas Toilets– Anaerobic Digester– Bio Gas Distribution– Bio Gas Bladder Storage• 2.2.3 Generator Conversion to Diesel/Biogas• 2.2.4 Bio Gas SalesNote:Construction Non RIBudget Segregation
  24. 24. 2013 RI CONVENTIONOur WBS – Detail Level• 3.0 Water Self Sufficiency– 3.1 Borehole• 3.1.1 Pump• 3.1.2 De-Fluoridation– 3.2 Rainwater Harvest• 3.2.1 Collection & Storage– Existing Buildings– New Barn– New Farm Industry Building– New Clinic– New School• 3.2.2 Pumping• 3.2.3 Chlorination– 3.3 Micro-Drip Irrigation• 3.3.1 Phase One• 3.3.2 Phase Two– 3.4 Solar Hot Water• 3.4.1 Phase One• 3.4.2 Phase Two
  25. 25. 2013 RI CONVENTIONThe Planning Process• Have a good definition of dependencies• Application to this project– Food and Subsistence Depends on Water– Water Supply depends on• Collection and Ability to Pump and Store– Ability to Pump depends on electricity• Cannot afford to run diesel generator• Top Priorities – Phase One– Electric Power – Wind and Solar– Rainwater Harvest– Micro-drip Irrigation for crop yields– Build a barn for animals
  26. 26. 2013 RI CONVENTIONWaterSelf-SufficiencyFoodSelf-SufficiencyCookingGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyCookingWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Food CropsCookingWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Food CropsCookingWaterSelf-SufficiencyFoodSelf-SufficiencyWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyCookingGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyRaise AnimalsPower
  27. 27. 2013 RI CONVENTIONElectrical Power Rainwater HarvestIrrigationBarnWaterSelf-SufficiencyBorehole PumpGrow Animal FeedAnimals ManureDistribution PumpBio-Gas PlantFoodSelf-SufficiencyCookingGrow Food CropsFertilizerEggsMilkMeatDe-FluoridationChlorinationEquip Kitchen/Dining Hall RI Grant FundedOutside of GrantMethaneWaterSelf-SufficiencyFoodSelf-SufficiencyCookingWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Food CropsCookingWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Animal FeedGrow Food CropsCookingWaterSelf-SufficiencyFoodSelf-SufficiencyWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyGrow Animal FeedGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyCookingGrow Animal FeedGrow Food CropsWaterSelf-SufficiencyFoodSelf-SufficiencyBorehole PumpRainwater HarvestBorehole PumpBorehole PumpRainwater HarvestBorehole Pump
  28. 28. 2013 RI CONVENTIONAgile Project Management(For Those Familiar with Project Management)• We actually used agile techniques– A detailed planning horizon• The entire five year project was laid out at thebeginning in three phases (and grants)• 1.Electrical and Water projects (including irrigation) plus barn• 2.Bio Gas, Solar Hot Water, Greenhouses, Road, Farm industry• 3.Constructing and Equipping Clinic and School• Detailed planning commenced as we progressedcloser to the planning horizon– Asked: Does anything from prior phase need moreattention? (…and it did!)
  29. 29. 2013 RI CONVENTIONIssues• Rotary International Money cannot be spent onconstruction (e.g. building the barn) or oninterior finishing of a structure (e.g. wiring forlights inside a building).• Resolution– Find a donor to pay for construction of barn– Mid Term: Donor for Farm Industry Building– Long Term: Donors for clinic and school– Use Dayton Rotary funds for wiring
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  31. 31. 2013 RI CONVENTIONSelf-Sufficiency - Food• Barn: Get Bid, Raise Money, Contract– Outside of RI Grant – Non-Rotarian Donor• Greenhouses (Frame and Plastic-not construction)– Place in next grant application– Include rainwater harvest, irrigation, bug screens• Animals: Provide after Barn Built– Heifer International• Church Adoption of Project via Heifer– Rotary Inner Wheel, other donors.
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  33. 33. 2013 RI CONVENTIONSelf-Sufficiency -Food• Implement Bio-Gas for cooking– Anaerobic Digester for cow manure• Put in second grant application– Expand to Bio-Gas Toilets• Put in long-term plan (third grant)– Bladder Storage of methane• Put in long term plan (unfunded option)– Increased Capacity and pump to allow sales• Put in long term plan (unfunded option)
  34. 34. 2013 RI CONVENTIONSelf-Sufficiency - Food• Provide for farm industries– Processing crops– Preparing animal feed• Silage Production, Hay baling• Sunflower seed processing– Sell services for revenue generation– Construct a farm industry building• Outside of RI Grant
  35. 35. 2013 RI CONVENTIONEconomic SustainabilityInter-relationships• Grow Sunflowers/Harvest Seeds– Use Rotary Provided Press to extract oil• Use oil for cooking– reduce expense of purchase• Make “Sun Butter”– Consume or sell• Sell oil not needed– generate revenue– Use residue as chicken feed• Reduce cost of feeding chickens• Eggs and meat for children – reduce food costs• Sell excess in marketplace – generate revenue
  36. 36. 2013 RI CONVENTIONThe Big Plan• Expand Irrigation as water availabilityincreases• Provide solar hot water for kitchen andhand washing• Add refrigeration and freezer
  37. 37. 2013 RI CONVENTIONNew Demands - (Scope Increases)• Greenhouses very successful– Double the number• Power demands grow more than expected– Increase solar and batteries, larger inverterand decrease pump electrical load
  38. 38. 2013 RI CONVENTIONRisk Management (Beyond Technical Risks)• Risks can be negative or opportunity• Task Duration– How long will something take• Especially where other tasks depend on it’s completion tostart• Task Cost– Changes in exchange rate and Cost Inflation• From Quote to Funds Available– Contingency Reserve in quotes• Risk is the product of the likelihood it happens and theimpact if it happens.• Identified Risks should be constantly monitored
  40. 40. 2013 RI CONVENTIONRisk Distribution• What most people thinkMost LikelyOptimistic-Less Cost-Less TimePessimistic-Higher Cost-Longer Time
  41. 41. 2013 RI CONVENTIONDuration and Cost– The RealityLikelihoodDurationOr CostWorstCaseBestCase
  42. 42. 2013 RI CONVENTIONDuration & CostLikelihoodDurationOr CostMostLikely“MODE”WorstCaseAverage“MEAN”Midpoint“MEDIAN”80%RESERVEHOW RISKY ISTHIS ACTIVITY?
  43. 43. 2013 RI CONVENTIONCost Risk• Exchange Rate– RI Provides a value to use for each country• Inflation• Planning for risk– Cannot pad RI Grant quotes– Can have quotes include contingency reserve– “Quote Valid” timeframes awaiting funding– Best to include things in the grant budget than can bedropped off if higher priority needs demand moremoney. Things you want to do, but not critical• Re-program or defer content if needed
  44. 44. 2013 RI CONVENTIONAddressing RisksOnce Identified & Analyzed• Avoidance– Can we do something less risky?• Mitigation– Can we reduce the likelihood of the risk?– Can we reduce the impact from the risk?• Deflection– Can we insure against the risk impact?• Includes warranties on material and performance
  45. 45. 2013 RI CONVENTIONRisk Example• RI Grant for Maji Mazuri included– Two Phases of Solar Hot Water Heating• #1 - Dish and Hand Washing Demands (essential)• #2 – Hot water for showers (very desirable)• Encountered Electrical Issues – $$ needed (negative impact)• Greenhouses were phenomenal success (opportunity)– Desirable opportunity to increase from 4 to 8 bays• Reprogrammed funds from solar hot water phase 2• Key – New demands were already in the project plansimplifying tradeoff reprogramming.• Overall Budget – no change
  46. 46. 2013 RI CONVENTIONDedicating The Greenhouses• July 2012 – PresidentTanaka’s FIRSToverseas project visit
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  48. 48. 2013 RI CONVENTIONRisk Example• RI Grant Included Fixing road to site to assure all-weather access. Critical Need.• Grant Budget assumed worst case changes for each roadsegment and use of single contract to a road contractor.• Strategy: Included road work into clinic and schoolconstruction contract – segregated line items.• Reality:– Budget: Ksh 937, 500 (US$ 11,000)– Actual: Ksh 440,000 (US$ 5,200)• Surplus held in reserve through next rainy season toconfirm adequate fix and then reprogrammed– Had to add Fluoride Filtration to borehole water after RotarianArticle in March 2012 led us to test water for fluoride.
  49. 49. 2013 RI CONVENTIONRoad TodayRock BackfillCulvertsDrainage Ditches
  50. 50. 2013 RI CONVENTIONRisks Harder To Predict• Political Turbulence– Delays in dealing with government– Unrest impacting security• New and urgent requirements– Scope changes needed.• Delivery Schedule Promises not kept• Weather and its impacts– Drought versus rain impact to roads• Plan not followed– Critical activity omitted• Fundraising Risk – ability to raise money needed– Especially for non RI Grant Construction aspects
  51. 51. 2013 RI CONVENTIONImplementing Bio-Gas Risks• Design Assumptions on manure– Quantity and Quality• Qualifications of vendor– Double check by outside experts
  52. 52. 2013 RI CONVENTIONRotary Built A Bio-Gas Plant
  53. 53. 2013 RI CONVENTIONMeeting Fundraising Risk• Funds Needed for DDF and RI Match– Implemented an adoption program• Funds Needed for construction– Obtained large challenge grants– Involved non-Rotary organizations (churches)– Adoption program for buildings & classroomsElement Cost RI Money Donation SourceConstruct Clinic $38,500 $0 $38,500 Cincinnati RotarySchool Computer Room $11,000 $0 $11,000 Tipp City RotaryElement Cost RI Money Donation SourceSchool Rainwater $750 $350 $400 Middletown RotaryBio-Gas Stoves $600 $200 $400 Batavia Rotary
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  58. 58. 2013 RI CONVENTIONFunding Maji Mazuri Project: $368,217Dayton Rotaryand Rotarians38%6670 DDF15%RI - TRF13%Rotary Clubs -other than Dayton20%Churches3%Non-Rotarians10%Rotarians - Direct1%$145, 294$78,000$60,000$50,000(Non-6670)21 of 50 ClubsIn District 6670
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  60. 60. 2013 RI CONVENTIONMeeting The Sustainability Challenge• Economic (Self-Sufficient Operations)– Cost Reductions and Revenue Generation• Environmental (Local resources/Low Pollution)– Used locally manufactured products, Green Energy Sources• Cultural (Include local leaders and diverse cultures)– Coordination with surrounding Masai population – advantages– Mixing of ethnicities (tribal backgrounds) in school– Hosting inter-tribal cooperation workshops at site• Social (Training to prepare workers, men and women)– Vocational focus included in newly built and equipped school– School population ended up well over 50% girls
  61. 61. 2013 RI CONVENTIONPartner Roles• Dayton Rotary (same PM for entire project)– Overall Grant and Project Management– Fundraising for matches and construction• Muthaiga Rotary (3 different PMs in 5years)– Funds Management– Facility Specifications for contracts– Contract Management / Quality Assurance
  62. 62. 2013 RI CONVENTIONSurprises and Lessons Learned• Impact of violence after 1997 elections– Expansion of scope to include IDP camp girls• Planned 50/50 boys-girls was unrealistic– And should have been obvious to us• Warranties on technical aspects critical• You can’t force your beneficiaryorganization to follow all your plans forthem• Following project management standardsmakes a big difference
  63. 63. 2013 RI CONVENTIONBottom Lines• Applied Rigorous Project Management– Cost and Schedule Controlled– Tradeoffs and Reprogramming accomplished• Self-Sufficient Sanctuary Established– Energy, Water, Food– Green Goals Implemented• Children safe, receiving health care andeducation• Addressed all goals for RI Grants and Reach-Outto Africa (ROTA)• Superb support and participation by RI Districts6670 (Ohio) and 9200 (East Africa)
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  67. 67. 2013 RI CONVENTIONThank You – Rotarians !
  68. 68. 2013 RI CONVENTIONThank You – Rotarians !
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