Planning And Project Management


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Planning And Project Management

  1. 1. PLANNING AND PROJECT MANAGEMENT Projects are described as the “cutting edge of development” or as “building blocks of development.” By Ernesto Franco Reporter: Mr. Melgazar D. Monsanto
  2. 2. THE CONTEXT TO PROJECT MANAGEMENT: UNDERSTANDING CORPORATE PLANNING <ul><li>A Basic Starting Point: </li></ul><ul><li>Defining Functional Relationships </li></ul><ul><li>Corporate Planning is the context of project management; its proper understanding will make interlocking relationships clearer when we focus on projects. </li></ul><ul><li>Plan a plan, </li></ul><ul><li>Program a plan, and </li></ul><ul><li>Projecticize a program. </li></ul>
  3. 3. <ul><li>Planning process is of course continuous and never-ending. </li></ul><ul><li>-such as in the form of a plan, a program, or a project </li></ul><ul><li>-are interim and tentative </li></ul><ul><li>-results always require constant updating and change. </li></ul><ul><li>-the assumptions used in the planning process inevitably undergo revisions and trigger a chain reaction throughout the stages or sequences of a plan. </li></ul>
  4. 5. Implementing Development: People Needs <ul><li>Development is the assessment of needs of people and responding to these needs in the most efficient, effective, and responsive ways. </li></ul><ul><li>Each society or each organization can go through: </li></ul><ul><ul><li>1. National Planning - for whole societies such as through the </li></ul></ul><ul><ul><li>institutionalized Planning Agency, like the National Economic </li></ul></ul><ul><ul><li>and Development Authority for the Philippines or Corporate </li></ul></ul><ul><ul><li>Planning – for whole organizations or institutions or even sectors </li></ul></ul><ul><ul><li>or regions, such as Government Departments, Business </li></ul></ul><ul><ul><li>Corporation or Universities and Hospitals </li></ul></ul>
  5. 6. <ul><ul><li>2. Programming - which breaks down the chosen strategies in the Long-Range Plan into cluster of Intermediate-phrased Programs. </li></ul></ul><ul><ul><li>3. Project Management – which identifies projects for immediate implementation from the Programs. </li></ul></ul>
  6. 7. The Concept of Corporate Planning <ul><li>Corporate planning is the total planning . </li></ul><ul><li>A formal and systematic process to ensure that long-range, intermediate and annual planning is carried out regularly within the organization. Programs and projects that evolve out of these processes just have logical and contributory linkages to the goals and objectives of the corporate plan. </li></ul>
  7. 8. <ul><li>Firstly, Strategic or long-range planning. </li></ul><ul><li>This is made by top management and senior divisional heads. </li></ul><ul><li>Secondly, tactical or development planning. </li></ul><ul><li>This is made by operating management. It is intermediate in terms of scope and consists of programs. </li></ul><ul><li>Thirdly, annual operating planning. </li></ul><ul><li>This is made by all functional units within the strategic, policies and guidelines mandated by top management. </li></ul>Three levels of planning make up corporate planning:
  9. 11. Larger Systems and Larger Issues <ul><li>The process of Strategic Planning </li></ul><ul><li>1. For determining what the organization might do, we make an analysis of the external environment in which the organization operates. This type of analysis should cover a minimum span of 5-10 years’ projection, and should probably be repeated once every three years. </li></ul>
  10. 12. <ul><li>This may include: </li></ul><ul><li>1.1 An evaluation of the country’s national economic and social development plans. </li></ul><ul><li>Firstly, what are the blueprints of national regional development? </li></ul><ul><li>Secondly, what are the principal development thrusts of these plans? Any program to projects selected thereafter should conform to these thrusts. </li></ul>
  11. 13. <ul><li>Principally, they are: </li></ul><ul><ul><li>Countryside development. </li></ul></ul><ul><ul><li>Technology thrusts including urbanization and industrialization. </li></ul></ul><ul><ul><li>Government reforms. </li></ul></ul><ul><ul><li>Social equities thrust. </li></ul></ul><ul><ul><li>Self-reliant and efficient economy. </li></ul></ul><ul><ul><li>Expanded exports drive and enlarged foreign investments. </li></ul></ul><ul><ul><li>Asian thrust. </li></ul></ul>
  12. 14. Principal areas of concern of Philippine development are: <ul><li>A concern to reduce poverty. </li></ul><ul><li>A concern to minimize social injustice. </li></ul><ul><li>A concern to enlarge power-sharing in national affairs. </li></ul><ul><li>A concern to develop indigenous processes of development. </li></ul>
  13. 15. <ul><li>Thirdly, what are the undergirding principles or development we can discern because of these plans and thrusts? </li></ul><ul><li>Principally, they are: </li></ul><ul><li>The centrality of the rural sector in Philippines development. </li></ul><ul><li>A deep-seated concern for an improved quality of life among the rural masses. </li></ul><ul><li>Participatory power-sharing and decision-making in self-induced development. </li></ul><ul><li>Integration of national and regional goals and development efforts. </li></ul><ul><li>Building of self-reliant economy. </li></ul><ul><li>Modernization of international and trade relations. </li></ul>
  14. 16. Lessons From National Planning <ul><li>1.The basic guidelines for policies, programs, and projects. </li></ul><ul><li>2.The strategy for development </li></ul><ul><li>3.A number impact and projects are focused, including family planning; the pan-Philippine highway; energy development; integrated steel mill; low-cost housing; and textbooks production and distribution. </li></ul><ul><li>4.The plan also identifies a number of national development targets and defines the framework for regional development. </li></ul>
  19. 21. Tactical or Development Planning <ul><li>Programs cover a wider scope of activities and a broader range of goals than projects. They are usually managed by divisions or functional units of an organization and make up the maintenance system of the organization. Goals and objectives for programs are deemed achievable within 5 to 10 years although in business the common time span is 3 to 5 years. </li></ul><ul><li>Organizational design including issues </li></ul><ul><li>Information systems </li></ul><ul><li>Management control system </li></ul><ul><li>Reward system </li></ul><ul><li>Staffing and management development </li></ul><ul><li>Leadership issues </li></ul><ul><li>Resources-allocation </li></ul>
  20. 22. Different elements of organizational strategy <ul><li>Basic Strategic Major </li></ul><ul><li>Influences Determine Purposes Determine Policies </li></ul><ul><li>1. External 1. Survival, 1. Clientele </li></ul><ul><li>Environment 2. Growth rate and 2. Product or service </li></ul><ul><li>2. Internal resources, Diversification scope, </li></ul><ul><li>3. Values of owners/ 3. Stability, 3. Bases of competition </li></ul><ul><li>4. Social 4. Profitability 4. Resource-allocation </li></ul><ul><li>responsibility 5. Market share policies </li></ul><ul><li>of owners/ 6. Social contribution 5. Risks, 6. Time horizon </li></ul>
  21. 23. PROJECT MANAGEMENT <ul><li>II. Projects As the Flesh and Bones of Plans </li></ul><ul><li>A. Key Concepts </li></ul><ul><li>Three key concept of project management are: </li></ul><ul><ul><li>1. The single point of integrative management </li></ul></ul><ul><ul><li>2. Integrative planning control </li></ul></ul><ul><ul><li>3. Multi-disciplinary skills and time-bound: </li></ul></ul>
  22. 24. <ul><li>B. Characteristics of Projects </li></ul><ul><li>These key concepts give projects the following characteristics: </li></ul><ul><ul><li>Projects are non-traditional, innovative processes for development. </li></ul></ul><ul><ul><li>Projects are complex efforts. </li></ul></ul><ul><ul><li>A project is the process of creating a specific result. </li></ul></ul><ul><ul><li>A project has a life cycle. </li></ul></ul><ul><ul><li>Projects need multi-disciplinary skills. </li></ul></ul>
  23. 25. Functional Versus Project Management <ul><li>1. Specific life cycle 1. Continues life from year to year </li></ul><ul><li>2. Definite start and completion points, 2. No specific characteristics tied to calendar </li></ul><ul><li>with calendar dates dates other than fiscal year budgets. </li></ul><ul><li>3. Can be abruptly terminated if goals are not 3. Assurance or continued function, even in </li></ul><ul><li>met; always terminated when project is completed. major reorganization. </li></ul><ul><li>4. Often unique, not done before. 4.Usually performing well-known functions, and tasks only slightly different from past efforts. </li></ul><ul><li>5. total effort must be completed within fixed 5. maximum work is performed within </li></ul><ul><li>budget and schedule annual budget ceiling. </li></ul><ul><li>6. Prediction of ultimate time and cost is difficult. 6. Prediction of annual expenditures relatively simple. </li></ul><ul><li>7. Involves multi-disciplinary skills from different 7. Involves a few closely-related skills </li></ul><ul><li> departments or organizations which may change and discipline within one well-defined </li></ul><ul><li> from one life-cycle phase to the next. and stable organization. </li></ul><ul><li>8. Rate and type of expenditures constantly 8. Relatively constant rate and type of changing. expenditures. </li></ul><ul><li>9. Basically dynamic in nature 9. Basically steady-state in nature. </li></ul>
  24. 26. Advantages of Project Management <ul><ul><li>1.The advantages of using project management </li></ul></ul><ul><ul><ul><li>Project commitments are made only to achievable technical, cost, and scheduled goals, and </li></ul></ul></ul><ul><ul><ul><li>Every project is planned, scheduled and controlled so that commitments are in fact achieved. </li></ul></ul></ul><ul><ul><li>2. The advantages of appointing a Project Manager </li></ul></ul><ul><ul><ul><li>Accountability is placed on one person for overall results of the project. </li></ul></ul></ul><ul><ul><ul><li>Assurance that decisions are made on the basis of the overall good of the project, rather than for the good of one another contributing functional department. </li></ul></ul></ul><ul><ul><ul><li>Coordination of all functional contributors to the project. </li></ul></ul></ul><ul><ul><ul><li>Proper utilization of integrated planning and control methods and the information they produce. </li></ul></ul></ul>
  25. 27. <ul><ul><li>3. the advantages of integrated planning and control of all projects </li></ul></ul><ul><ul><ul><li>Assurance that the activities of each functional area are being planned and carried out to meet the overall needs of the project. </li></ul></ul></ul><ul><ul><ul><li>Assurance that the effects of favoring one project over another are known, such as in resources allocation. </li></ul></ul></ul><ul><ul><ul><li>Early identification of problems that may jeopardize the success of the project, thereby allowing prompt corrective action </li></ul></ul></ul>
  27. 29. A. A Suggested Project Cycle <ul><li>Stage1. Project Selection and Development </li></ul><ul><li>Stage II. Project Implementation </li></ul><ul><li>Stage III. Project Termination & Evaluation </li></ul><ul><li>Stage IV. Project Recycling </li></ul>
  29. 31. IV. Improving Project Management in Your Organization <ul><li>1. Through Management Development and Training </li></ul><ul><ul><ul><li>Establish development and training programs. </li></ul></ul></ul><ul><ul><ul><li>Develop policies and procedures: </li></ul></ul></ul><ul><ul><ul><ul><li>Selection criteria for project Managers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Career development of staff. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Performance evaluation of project managers. </li></ul></ul></ul></ul><ul><li>2. Through Organization of Responsibilities </li></ul><ul><ul><li>Establish central operations planning control office. </li></ul></ul><ul><ul><li>Established policies on reporting relationships. </li></ul></ul><ul><ul><li>Develop responsibility matrices to clarify relationships </li></ul></ul><ul><ul><li>Develop job specifications. </li></ul></ul>
  30. 32. <ul><li>3. Through Improved Systems, Methods and Procedures </li></ul><ul><li>a. Establish procedures for coordination of plans and actions among all functional units. </li></ul><ul><li>- Prior to commitment </li></ul><ul><li>- During Submission of project proposal </li></ul><ul><li>- During Implementation of projects </li></ul><ul><li>b. Introduce new or revised procedures on </li></ul><ul><li>- Price quotations and schedules </li></ul><ul><li>- Authorization or project </li></ul><ul><li>-Project cost accounting </li></ul><ul><li>-Manpower expenditures </li></ul><ul><li>-Project breakdown schedules and network planning methods </li></ul><ul><li>- Adequacy of project files </li></ul><ul><li>-Project evaluation and review </li></ul><ul><li>c. Implement integrative, multi-project information systems. </li></ul><ul><li>d. Establish project control room and related support procedures </li></ul>
  31. 33. PLAN ELABORATION <ul><li>The Department of Education, Culture and Sports (DECS) elaborates on the government process of breaking down plans into projects. </li></ul><ul><li>The process of plan elaboration includes two steps: </li></ul><ul><li>FIRST: Programming </li></ul><ul><li>The task of dividing up the plan into broad action areas each of which aims at accomplishing specific objective(s). </li></ul><ul><li>SECOND: Project Identification </li></ul><ul><li>The second step in plan elaboration is project identification. A project is any unit of expenditure which is administered or accounted for as an identifiable group of activities. </li></ul>
  32. 34. Steps in Programming and Project Identification <ul><li>Step I: Identify sub-objectives. </li></ul><ul><li>Step II: Relate Targets and Provisions to Sub-Objectives </li></ul><ul><li>Step III. Determine Administrative Body. </li></ul><ul><li>Step IV. Regionalize Program. </li></ul><ul><li>Step V. Analyze Packages of Action and Identify projects </li></ul>
  33. 35. Classification of Projects <ul><li>Projects may be classified as to their: </li></ul><ul><ul><ul><li>Status – A project is either new or already, existing or on-going. </li></ul></ul></ul><ul><ul><ul><li>Organization - A project is managed by either an existing organization or a new one. </li></ul></ul></ul><ul><ul><ul><li>Sector – A project belongs to an elementary, vocational, agricultural, general secondary or college/university level: or the public or private sector. </li></ul></ul></ul><ul><ul><ul><li>Origin – A project may be initiated by the school, division, regional or national level. </li></ul></ul></ul>
  34. 36. Stages of a Project <ul><li>1. Pre-Study Stage </li></ul><ul><li>2. Project Study Stage </li></ul><ul><li>3. Implementation Stage </li></ul><ul><li>4. Evaluation Stage </li></ul>
  35. 37. Management Mistakes <ul><li>Many Filipino school principals and university presidents-especially from fa,ily-owned, religion-affiliated institutions demonstrate a number of management mistakes also common with state university officials: </li></ul><ul><li>1.Short attention span – meaning, the executive pays attention just for a short while, then turns around and forgets about it completely. Too much politics. </li></ul><ul><li>2. Wrong emphasis – such as the politician’s smile, not the genuine attitude, and Filipinos are quick to spot the hypocrite and the actor from the genuine article.3. </li></ul><ul><li>3. Rigor mortis – if there are too many procedures, too many rules, too much control, too much fear of mistake, then the faculty and staff will not move or do anything and things just float along. </li></ul>
  36. 38. HISTORY OF EDUCATIONAL PLANNING IN THE PHILIPPINES <ul><li>According to the Department of Education, today’s educational planning in the Philippines can claim an unbroken history even before the establishment of our formal educational system. </li></ul><ul><li>During the pre-Spanish era and the period of more than four centuries when the Philippines was a possession of Spain and of the United States there was a long and routine sort of educational planning though it was not visible enough to compare with the present educational planning activities. </li></ul>
  37. 39. <ul><li>At a minimum, they had to estimate how many students there would be, how many classroom, teachers, desks and books would be needed to serve them adequately; how much money these would require, where the money would come from; and how and when it would be spent. This process was educational planning which was taken for granted as a normal part of the school administrators’ job. Much more in some instances. It was abused that it led to wasteful imbalances of our much limited school inputs. </li></ul>HISTORY OF EDUCATIONAL PLANNING IN THE PHILIPPINES
  38. 40. <ul><ul><li>1. Organization and Process of Overall Development Planning </li></ul></ul><ul><ul><li>1.1 In 1993, Commonwealth Act No. 2 was passed which created the National Education Council (NEC). It was the central authority responsible for the “formulation of definite and consistent national economic policies and the preparation of comprehensive economic and social development plan”. </li></ul></ul><ul><li>The formulation of any set of policies or any program in the council, was usually the concern of any or all of the following four groups: </li></ul><ul><ul><ul><li>The Council proper composed of Congressional members, appointive members from the Executive Branch and representatives of the private sector; </li></ul></ul></ul><ul><ul><ul><li>The technical staff for the council, composed of members of its three main offices: National Planning, Foreign Aid Coordination and Statistical Coordination and Standards; </li></ul></ul></ul><ul><ul><ul><li>Other departments, offices and agencies of the government, particularly the Budget Commission, Central Bank, Department of Finance. Presidential Economic Staff and </li></ul></ul></ul><ul><ul><ul><li>The private Sector. </li></ul></ul></ul>
  39. 41. <ul><ul><li>1.2 The law required approval by the President of both policies and programs of the Council before they could be implemented by the government’s departments, offices, and agencies. The National Economic Council was under the Office of the President and headed by a chairman with cabinet rank. He was directly responsible to the President of the Philippines </li></ul></ul><ul><ul><li>1.3 Aside from NEC, there were planning committees set up in some of the departments or agencies of the government. </li></ul></ul>
  40. 42. <ul><li>1962 - the Program Implementation Agency (PIA) was created through Executive Order No. 17 to meet the need for an implementing authority to push through development plans. </li></ul><ul><li>1966- the PIA was changed to PES, Presidential Economic Staff. These two agencies – the NEC and the PES, the one on planning and the other on programming, stood head above all other government executive departments, corporations, financial institutions, chartered cities and local governments in matters pertaining to these two functions. </li></ul><ul><li>On the regional level , planning was undertaken by the various regional development authorities. </li></ul><ul><li>On the local level , a provincial economic planning was set under the auspices of the defunct Emergency Administration. The NEC coordinated the planning activities of these agencies. </li></ul>
  41. 43. <ul><li>1.4 The NEC was basically an advisory body with no executive functions (with the exception of foreign aid). In order to coordinate the implementation of development projects, a Development Council, composed of heads of executive departments concerned with the economic and social development, head of major government agencies and legislative leader. This Council was presided over by the President himself, who required the members to submit in person progress reports on the different major projects. The Chairman of the NEC acted as Executive Secretary of the Development Council. The Secretariat of the NEC had an integrated Social Development Division located at the Office of National Planning which also dealt with education. </li></ul>
  42. 44. <ul><ul><li>1.5 Executive Order No. 53, dated December 8, 1966 created the Manpower Development Council under the Office of the President of the Philippines to undertake the responsibility of assessing human resources and forecasting the needs for trained personnel at various occupational levels. </li></ul></ul><ul><ul><li>1.6 With the proclamation of Martial Law in 1972 and the implementation of the Integrated Reorganization Plan , the National Economic and Development Authority (NEDA) was created for the purpose of recommending continuing coordinated and fully integrated social and economic plans and programs. </li></ul></ul><ul><li>- This body is primarily charged with the task of overseeing government development programs. It is central agency for national development planning and coordination of program implementation. </li></ul>
  43. 45. Development of Educational Planning <ul><ul><li>In 1954, the defunct Congress of the Philippines created the Board of National Education through Republic Act No. 1124, Its broad functions were: </li></ul></ul><ul><li>to formulate the objectives and basic policies of education in conformity with the Constitution; </li></ul><ul><li>to coordinate the objectives, functions, and activities of different types of educational institutions; and </li></ul><ul><li>set up general goals of accomplishments for the entire school system. </li></ul><ul><li>The Board aside from being the highest policy making body in education has been known as the first official planning body for education. Initially, its activities that were concentrated on the public school system were integrated with the national development plan. </li></ul>
  44. 46. <ul><li>Republic Act No. 4372 amended Republic Act No. 1124 and provided among others the following additional functions of the Board of National Education; </li></ul><ul><ul><ul><li>To establish guidelines, policies, and criteria on the basis of which the examination, evaluation and approval of textbooks by the Board of Textbooks shall be made. </li></ul></ul></ul><ul><ul><ul><li>To compile educational statistics, keep records on education, conduct researches, surveys, and studies on educational conditions and problems, evaluate the effects of national educational policies and undertake such other activities as to effectively carry out all purpose of this act. </li></ul></ul></ul><ul><ul><ul><li>To secure data and information from all government offices and entities and educational institutions, public and private, and to consult and confer with the offices and personnel thereof, on such matters as may be necessary for the Board to discharge its functions. </li></ul></ul></ul><ul><ul><ul><li>To submit an annual report to the President and to Congress not later than January thirty-first of each year which shall include a compilation of the national educational policies formulated by the Board, an evaluation of the national educational system, and recommendation to the Executive and Legislative branches of the government on the improvement of the educational system of the country. </li></ul></ul></ul>
  45. 47. <ul><li>Operational planning then in the Department of Educational originated from its three bureaus. Although in principle these bureau-sectoral plans were consolidated at the level of the Secretary of Education, in practice they were submitted to the Office of the President with hardly any substantial change and were not coursed through the Board of National Education unless they involved changes in curricula and standards. </li></ul>
  46. 48. <ul><li>The following were the basic criteria by the Bureau of Public Schools for 1965-1970 was such a resource-oriented program. It was formulated by an Ad-Hoc Committee on Educational created by the Director of Public Schools in 1964. In the Bureau of Vocational Education, an attempt was made to relate projected occupational requirements to vocational-technical education, but the conclusions were primarily directed towards the cost of vocational education and did not establish actual physical targets. </li></ul><ul><li>It can be said that in the past years the partial educational planning in the Philippines, both of policy and implementing levels, was more concerned with “humanistic values”, quality of instruction, and “cost-determination” , than integration into the general strategy for accelerated economic development, according to the DECS. </li></ul>
  47. 49. <ul><li>Through the Office of the Division of Educational Planning, the Department of Education conducted a comprehensive review of the educational system in coordination with the Presidential Commission to Survey Philippine Education (PCSPE). </li></ul>
  48. 50. <ul><li>One of the concrete measures recommended by the PCSPE was to expand the planning Division. Consequently, Educational Decree of 1972 provides in part…….”the National Board of Education (NBE) shall be assisted by an office of planning and research known as planning Service in the Department of Education , the Planning Service of the Department of Education and Culture secondary and higher education . “The proposed Division of Planning and Programming of the Department of Education was expected to consolidate the Plans of the Bureaus into Five-Year Department of Education Report which would establish priorities. </li></ul>
  49. 51. HOW JAPANESE SEE PHILIPPINES <ul><li>Firstly, while we had an early start with American assistance on industrialization in the 1960s, we have not been able to exploit this early lead. Our development has fallen off; government protection through tariffs of so-called infants industries (owned by selfish family elites) have made these industries inefficient, labor salaries cheap, and our products low in quality. </li></ul><ul><li>Secondly, since our industries needed overseas materials we depended on foreign exchange. But crises like political events (Aquino Assassination, Marcos overthrow, etc.) have paralyzed these situations, resulting in gross illiquidity and financing problems. </li></ul><ul><li>Thirdly, although we have a big population, our consumptions levels are low and purchasing power weak, discouraging local manufactures. </li></ul><ul><li>And fourthly, our elite families and their professional managers (who have little authority) prefer overnight riches to long-term rewards such as through equipment investments. </li></ul>