Project Management

MPH 2nd Year
Prabesh Ghimire
Project Design and Project Work

Project Design and Project Work MPH 2nd
Year
©Prabesh Ghimire
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TABLE OF CONTENTS
UNIT 1: PROJECT MANAGEMENT KNOWLEDGE AND SKILLS.............................................................4
Overview of Project and Project Management..........................................................................................4
Principles for effective project management.............................................................................................4
Project Management.................................................................................................................................8
Constraints and Challenges in Project Management and Alleviating Strategies....................................10
Discuss Development Project Environment............................................................................................12
UNIT 2: PROJECT LIFE CYCLE ...............................................................................................................14
The Six Project Management Phases.....................................................................................................14
Project Design.........................................................................................................................................16
The Project Management Cycle..............................................................................................................17
The project management processes.......................................................................................................17
UNIT 3: PROJECT PLANNING TOOLS AND APPLICATION..................................................................20
Logical Framework Analysis ...................................................................................................................20
Program Evaluation and Review Technique (PERT)..............................................................................22
Gantt Chart..............................................................................................................................................27
UNIT 4: PROJECT QUALITY MANAGEMENT .........................................................................................28
Introduction to project quality..................................................................................................................28
Project Quality Management...................................................................................................................29
Creating a Project Quality Plan...............................................................................................................31
Project Quality Tools...............................................................................................................................32
UNIT 5: SOCIAL ENTREPRENEURSHIP..................................................................................................34
Introduction to social entrepreneurship...................................................................................................34
Frameworks for Social Entrepreneurship................................................................................................35
UNIT 6: THE ROLE OF THE PROJECT MANAGER ................................................................................38
Roles of project manager........................................................................................................................38
The Responsibilities of the Project Manager ..........................................................................................38
Managerial Skills for Project Manager ....................................................................................................39
Interpersonal Skills for Project Managers ...............................................................................................40
Power and influence of project manager ................................................................................................41
MISCELLANEOUS .....................................................................................................................................42
Project Risk Analysis and Management .................................................................................................42
Sensitivity Analysis..................................................................................................................................44
Merger.....................................................................................................................................................44

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UNIT 1: PROJECT MANAGEMENT KNOWLEDGE AND SKILLS
Overview of Project and Project Management
Project
A project is a temporary endeavour undertaken to create a unique product, service, or result. It is a series
of activities aimed at bringing about clearly specified objectives within a defined time-period and with a
defined budget.
A project should also have:
- Clearly identified stakeholders, including the primary target group and the final beneficiaries;
- Clearly defined coordination, management and financing arrangements;
- A monitoring and evaluation system; and
- An appropriate level of financial and economic analysis, which indicates that the project's benefits will
exceed its costs.
Characteristics of a project
i. Projects have a defined timescale
- Projects have a clearly specified start and end date within which the deliverables must be produced to
meet a specified client requirements.
ii. Project has objectives
- Every project has certain pre-determined objectives. After accomplishment of objectives, the project
is treated as closed.
iii. Projects have an approved budget
- Projects are allocated a level of financial expenditure within which the deliverables must be produced
to meet a client requirement.
iv. Have limited resources
- At the start of a project an agreed amount of human resource, equipment and logistics are allocated
to the project.
v. Involve risk
- Project entails a level of uncertainty and therefore carries risk.
vi. Achieve beneficial change
- The purpose of a project typically is to improve an organization through the implementation of
business change.
Principles for effective project management
1. The success principle
- The measures of project success, in terms of both process and product, must be defined at the
beginning of the project as a basis for project management decision-making and post-project
evaluation.

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- Project success is a multi-dimensional construct that inevitably means different things to different
people. It is best defined at the beginning of a project in terms of key and measurable criteria upon
which the project’s relative success or failure may be judged.
- First and foremost, project success needs to be defined in terms of the acceptability of the project's
deliverables, e.g. scope, quality, relevance to client needs, effectiveness, etc.; and secondly in terms
of its internal processes, e.g. time, cost, efficiency, etc.
- These measures of project success should be verified and reinforced throughout the project life cycle.
2. The commitment principle
- An equitable commitment between the resource provider (sponsor) and the project delivery team
must exist before a viable project exists.
- An equitable commitment means that both parties are sufficiently knowledgeable of the undertaking,
the processes involved, and their associated risks, and both willingly undertake the challenge.
- A mutually acceptable commitment is one in which there is agreement on the goals and objectives of
the project in terms of the product’s scope, quality, time to completion and final cost.
- Since project success may be impacted by many constraints and risk events, both opportunity and
risk should be shared among the stakeholders.
3. The tetrad trade-off principle
- The core variable of the project management process namely scope, quality, time and cost, must all
be mutually compatible and definitely attainable.
- During the course of project management, various trade-offs may be necessary to address project
constraints.
- For example: if the scope of project is to be increased, then the project’s time and/or cost will also
have to be increased.
- If the time for the completion of project is to be reduced, the cost may need to be increased or scope
must be decreased.
- A project time may need to be extended or cost be increased so that patient quality standards are not
compromised.
4. The life-cycle principle
- A successful project management process relies on two activities – planning first, and then doing.
- These two sequential activities form the basis of every project life-cycle, and can be expanded to suit
the control requirements of every type of project in every area of project management application.
5. The management principle
- Policies and procedures that are effective and efficient must be in place for the proper conduct and
control of the project commitment.
- The attributes of good policies and procedures encompass clear roles and responsibilities, delegation
of authority, and processes for maintaining quality, time, and cost, etc., as well as managing changes
in the product scope and/or scope of work.
6. The single-point responsibility principle
- A single channel of communication must exist between the project sponsor and the project team
leader for all decisions affecting the project scope.
- However, this only applies to the decisions affecting the project scope and hence the project’s overall
cost and schedule.

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- In all other respects, free and transparent communication is indispensable for the coordination of a
complex set of project activities.
- Therefore, this principle must not in any way inhibit the proper exchange of information through the
network of project communication channels that is required to integrate all aspects of a complex
project.
7. The cultural environment principle
- The ability of a project delivery team to produce results both effectively and efficiently is highly
dependent upon the cultural environment. This cultural environment encompasses both internal and
external project relations and values.
- Internally, the management style of the team leader must be suited to the type of project and its
phase in the project life span.
- Externally, the management of the organization in which the project takes place must be supportive
and the environment must be free of obstacles.
Public health project in Nepal
Public Health Projects Funded by Implemented by
1 Sunaula Hazar Din (Golden 1000
days project)
World Bank  MOFALD and local partners
2 Suaahara II Project USAID  Helen Keller International
 CARE
 FHI 360
 NTAG
 ENPHO
 3Equal Access
3 Sustainable Action for Resilience and
Food Security (Sabal)
USAID  Save the Children
 Hellen Keller International
 CARE
 ACF International
 NEWAH
 Nepalit Technical Assistance Group
(NTAG)
4 Health for Life Project USAID  RTI International
 Jhpiego
 Integrated Rural Health Development
and Training Center (IRHDTC)
 Rolling Plans
5 Fertility Awareness for Community
Trasformation (FACT) Project
USAID  Save the Children
6 Health communication capacity
collaborative (HC3) project
USAID  John Hopkins Centre for
Communications program
7 Hospital Management Strengthening
Program
NSI  Ministry of Health
8 Family Planning Service Stregthening
Program (FSSP)
USAID  Marie Stopes International/ Sunaulo
Parivar Nepal
 IPPF/ FPAN
9 Support to the health sector program
(2016-18)
GIZ  Ministry of Health

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Discussion on INGO managed public health projects in Nepal
i. SUAAHARA II
- SUAAHARA II is a nutrition project that targets mothers and children who fall within 1000 days period
from conception until the child reaches 24 months of age.
- It also targets adolescents in selected districts.
Project brief:
Life of project April 2016 to March 2021
Goal Improved and sustained nutritional status among women and children
Target 40 districts and 1.5 million
Implementing
organizations
 Helen Keller International
 CARE, FHI 360,
 Nepali Technical Assistance Group (NTAG),
 Equal Access,
 Environment and Public Health Organization (ENPHO),
 Vijaya Development Resource Centre (VDRC)
Objectives  To improve household nutrition and health behaviors.
 To increase the use of quality nutrition and health services by women and
children
 To improve women’s and children’s access to diverse and nutrient rich foods
 Accelerate the rollout of the Multi-sector Nutrition Plan (MSNP) through
strengthened local governance
ii. Sustainable Action for Resilience and Food Security (Sabal)
- SABAL is a multi-sectoral project that works to improve food security and nutritional outcomes
through activities relating to agriculture, livelihood diversification, nutrition and disaster risk reduction.
- Project brief:
Life of project 2014 to 2019
Goal Increased resilience of targeted vulnerable communities in Nepal
Target 11 districts
Implementing
organizations
 Save the Children,
 Helen Keller International,
 CARE,
 Action For Enterprise,
 Action Against Hunger/ACF International,
 Tango International,
 Alliance for Social Mobilization (Alliance Nepal),
 Development Project Service Centre (DEPROSC),
 Local Initiatives for Biodiversity, Research and Development (LI-BIRD), Nepal
 Water for Health (NEWAH),
 Nepali Technical Assistance Group (NTAG)
Total budget  $59 million
Objectives  To strengthen and diversify livelihoods
 To improve health and nutritional status
 To strengthen the ability of households and communities to mitigate, adapt to,
and recover from shocks and stresses

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iii. Health for Life Project
- Health for Life is a health system strengthening project working in coordination with Ministry of Health.
- Project brief
Goal To strengthen the Government of Nepal’s capacity to plan, manage, and deliver
high quality family planning and maternal, newborn and child health services at
the national, district, and local levels.
Target 30 districts (with three modalities)
Implementing
organizations
 RTI International
 Jhpiego
 Integrated Rural Health Development and Training Center (IRHDTC)
 Rolling Plans
Total budget  $27.9 million
Objectives  Improve health systems governance
 Develop and implement national evidence based health policies
 Strengthen national-level stewardship of the health sector
 Institutionalize a nationwide system for health care quality improvements
iv. Support to health sector program (S2HSP)
- Project brief
Goal To improve equitable access to health services for the population in selected
districts and municipalities
Target 30 districts (with three modalities)
Implementing
organizations
 Ministry of Health
Objectives and
approaches
 Implementing a social health insurance system including strengthening
hospital management
 Raising the quality of health care services in sexual and reproductive health
 Strengthening governance in health
 Upgrading and networking existing health information systems
Project Management
Project management is the application of knowledge, skills, tools and techniques to project activities to
meet the project requirements.
Project management comprises:
- A set of skills: Specialist knowledge, skills and experience are required to reduce the level of risk
within a project and thereby enhance its likelihood of success.
- A suite of tools: Various types of tools are used by project managers to improve their chances of
success. Examples include document templates, registers, planning tools, audit tools and review
forms.
- A series of processes: Various management techniques and processes are required to monitor and
control time, cost, quality and scope on projects. Examples include scope management, budget
management, quality management, team management, risk management, etc.

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Project Cycle Management
Project Cycle Management is a term used to describe the management activities and decision-making
procedures used during the life-cycle of a project (including key tasks, roles and responsibilities, key
documents and decision options).
PCM helps to ensure that:
- projects are supportive of overarching policy objectives of the organization and of development
partners;
- projects are relevant to an agreed strategy and to the real problems of target groups/ beneficiaries;
- projects are feasible, meaning that objectives can be realistically achieved within the constraints of
the operating environment and capabilities of the implementing agencies; and
- benefits generated by projects are likely to be sustainable.
Comparative overview of project and program management
Basis of
comparison
Projects Programs
Scope Projects have defined objectives. Scope
is progressively elaborated throughout the
project life cycle.
Programs have a larger scope and provide
more significant benefits
Change Project managers expect change and
implement processes to keep change
managed and controlled
Program managers expect change from
both inside and outside the program and
are prepared to manage it.
Planning Project managers progressively elaborate
high-level information into detailed plans
throughout the project life cycle
Program managers develop the overall
program plan and create high-level plans to
guide detailed planning at the component
level
Management Project managers manage the project
team to meet the project objectives
Program managers manage the program
staff and the project managers; they
provide vision and overall leadership
Success Success is measured by product and
product quality, timeliness, budget
compliance, and degree of customer
satisfaction
Success is measured by the degree to
which the program satisfies the needs and
benefits for which it was undertaken
Monitoring Project managers monitor and control the
work of producing the products, services
or results that the project was undertaken
to produce
Program managers monitor the progress of
program components to ensure the overall
goals, schedules, budget and benefits of
the program will be met

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Constraints and Challenges in Project Management and Alleviating Strategies
Constraints in Project Management
All projects are carried out under certain constraints. Traditionally, they are cost, time and scope. These
three constraints are commonly called the Triple constraint.
i. Scope:
- Scope is what the project is trying to achieve. It entails all the work involved in delivering the project
outcomes and the processes used to produce them.
- Scope is the way to describe the boundaries of the project. It defines what the project will deliver and
what it will not deliver.
- A scope creep may result in the project when a project incorporates additional scope of work after a
project has started without considering the impact on the resources or schedule of the project.
- A problem arises when the project includes additional work to its scope without a corresponding
increase in the time or budget.
ii. Cost/Budget
- In development projects, managers have to balance between not running out of money and not under
spending, because many projects receive funds or grants that have contract clauses with a ‘use it or
lose it’ approach to project funds,
- Poorly executed budget plans can result in a last minute rush to spend the allocated funds.
- A leading cause for project failure is poor estimating of the project budget; it is not unusual that during
the proposal process the organization in its rush to meet the deadlines try to cut the budget creation
process. This can lead to estimates that during the project implementation do not reflect the actual
needs of the project.
- Inadequate budget management can lead to misappropriation of funds, improper assignments of
expenses and losses that the organization may have to cover using its limited funds.
iii. Schedule
- Schedule is defined as the time required completing the project.
- The project schedule is often the most frequent project oversight in developing projects. This is
reflected in missed deadlines, incomplete activities and late donor reports.
- Proper control of the schedule requires the careful identification of tasks to be performed, an accurate
estimation of their durations, the sequence in which they are going to be done, and how people and
resources are allocated.
Further, some project managers focus on quadruple constraint, which adds quality as a fourth constraint
while six project constraints have recently dominated the modern project management:
 Scope
 Budget
 Schedule
 Quality
 Resources
 Risks

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iv. Quality
- Quality has a special place in health care projects. Almost all health care projects either directly or
indirectly affect the improvement of the lives of people.
- All health care projects must give the foremost concern for patient and client safety.
- If an individual’s life could be at risk because of a lack of quality in the project, other constraints may
need to be adjusted to support higher quality.
v. Resources
- The poor competencies of the human resources and lack of equipments necessary to deliver the
expected quality of the deliverable are significant constraints to project management.
- The ability to garner the required resources within the limited cost (budget) is generally one of the
biggest constraints of the project managers and stakeholders.
vi. Risks
- Typically, the greatest risks are not outside the control of the project managers.
- Experts estimate that 85-90% of risks to a project can be initiated and managed prior to or during the
execution of a project.
- The greater risks are from inadequate planning and optimistic estimates.
Alleviating strategies
i. Trade-off
- The most-effective strategy in alleviating project management constraints involve making trade-offs.
- For example: if the scope of project is to be increased, then the project’s time and/or cost will also
have to be increased.
- If the time for the completion of project is to be reduced, the cost may need to be increased or scope
must be decreased.
- A project time may need to be extended or cost be increased so that patient quality standards are not
compromised.
- If the project is behind the schedule, trade-off may be made to compress the schedule or fast tracking
the activity by doing more activities in parallel.
ii. Project revisions
- All projects are implemented with many uncertainties and exposed to many risks and therefore
requires periodic revisions to the original plans.

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- Changes in the project environment can delay a project, increase its cost or reduce its scope forcing
the project manager to evaluate alternatives and negotiate with donors and beneficiaries for
modifications in constraining factors.
Challenges in Project Management
The various challenges development projects face is compounded by the following factors:
i. Poor project planning: Poor planning caused by the rush to obtain grants and funding from donor
agencies that limit the time for deeper analysis of the project risks.
ii. Skills: Inadequate project management skills of project staff.
iii. Poor project assignment: No clear identification of who is responsible and accountable for the project
outcomes to the donors and for the beneficiaries.
iv. Lack of stakeholder involvement: As key project stakeholders are not systematically involved in the
planning and monitoring of a project, this leads to a lack of ownership when the project is
implemented.
v. Unrealistic plans: Projects planned on a linear process might leave little or no opportunities to modify
plans and adjust as the project makes progress.
vi. Poor, inconsistent project management discipline: No consistent use of a proven methodology to help
monitor the project implementation.
vii. Duplication of efforts: Projects within a development organization develop their own approach to solve
a problem, and each approach has its own management process. Ultimately, these separated efforts
result in duplication and in increased costs to the organization.
Discuss Development Project Environment
Projects are influenced by a multitude of factors which can be external 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 making up this environment are the client or customer, various external
consultants, contractors, suppliers, competitors, politicians, national and local government
agencies, beneficiaries and even the general public.
 Internal influences include the organization's management, project team, internal departments
(technical and financial), and possibly the shareholders.
All these environment are neatly encapsulated by the acronym PESTLE, which stands for
 Political
 Economic
 Social
 Technical
 Legal
 Environmental

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i. Political
- Here two type of political environment have to be considered:
Internal political environment
- There are internal politics that inevitably occur in all organization and which manifest themselves in
the opinions and attitudes of the different stakeholders in these organizations.
- The relationships to the project by these stakeholders can vary from very supportive to highly
antagonistic. Even within an apparently cohesive project, team jealousies and personal vested
interests can have a disruptive influence on the project.
- The fact that a project relies on clients, consultants, employee unions, vendors, statutory authorities
and of course beneficiaries, all of which have their own agendas and preferences , give some idea
about how this internal political environment can influence the project.
External Political Environment
- Any project is potentially subject to disruption due to national or international political environment
over which neither the donor nor project team has much control.
- In the middle of a project, the government may change and impose additional tax regulations, impose
penal working conditions, change policies or even cancel contracts altogether.
- For projects in countries with unstable economies or government, sudden coups or revolutions may
require the whole project team to be evacuated in a short notice.
- The political interplay between national and local government, lobbyists and pressure groups also has
to be taken into consideration by the project.
ii. Economic
- Here again there are two types of environment: internal or micro-economic environment and external
or macro-economic environment
Internal/ Micro-economic Environment
- The internal economies relate to the viability and soundness of the project.
- Unless there is a net gain, whether financial or non-financial, there is no point in even considering
embarking on a project.
- An organization suffering from severe financial difficulties is more likely to have problems managing a
project.
- E.g. of micro economic environment includes budget availability, minimum wage, consumption, etc.
External/Macro-economic Environment
- The external economies can have a serious influence on the project. Higher interest rates or
exchange rates and additional taxes or labour, materials can seriously affect the viability of the
project.
- Other external factors that can affect a project are tariff barriers, tax rates, inflation rates, temporary
embargo, etc.
iii. Social Environment
- Many projects inevitably affect the community where the project is being carried out. It is therefore
vital to inform the local residents in the project areas as early as possible about the intent, purpose,
and benefits of the project.
- Some projects cannot be even started without public enquiry, environmental impact assessment, field
surveys or other planning procedures.

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- Some of the social environment that can affect a project are:
 Cultural norms and community expectations
 Population demographics and epidemiological condition of the area in which the project is located
or from where it draws its beneficiaries.
 The social mobility and lifestyle changes
iv. Technological Environment
- Unless the project's environment is technically sound, it will end in failure. A new technology or a
technological shift can speed up the project's progress.
- Some of the technological factors that can affect the project are
 Emerging technologies that replace older technologies
 Technical constraints
 Automation
 Research and development
v. Legal environment
- One of the fundamental requirements of a project is that it is legal.
- The relationship between the contracting parties must be confirmed in a legally binding contract which
complies with the existing laws.
- The project should consider all the legal requirements stipulated by the national and local
governments in their project management procedures and procurement practices.
- Some of the legal factors that that can affect a project are
 Employment law
 Health and safety laws
 Regulatory frameworks
 Customs law
vi. Environmental
- Many environmental concerns might arise during planning and implementation of a project that could
affect the project process or its continued operation.
- Some of the environmental factors than can affect the project are
 Climate and weather conditions
 Geographical location
 Natural disasters
UNIT 2: PROJECT LIFE CYCLE
The Six Project Management Phases
A project life cycle is a collection of project phases. A project must successfully complete each phase
before moving onto the next. Development project management consists of six phases:
i. Initiation
ii. Planning
iii. Implementation
iv. Monitoring
v. Adapting
vi. Closure

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i. Initiation
- This is the first phase of the project in which an idea or a proposal is authorized and funded as a
project.
- It includes some initial planning and estimating to clarify its objective and scope.
- Usually projects are initiated by an organization in the form of a proposal or they are initiated by a
donor agency by competitive bidding process or cooperative agreement.
- During this initiation phase, a diagnosis and analysis of the problem is performed and it delineates the
strategies that the project will use to achieve its benefits.
- Major outcomes or decision from this phase is the acceptance of the project concept and approval of
the project proposal.
ii. Planning
- Once the proposal is accepted and funds have been approved, the project is finally ready to start.
- The first step is the development of all project plans, this phase includes two distinct components
 Enabling or core plans: It includes detailed planning that are produced as a core part of the
project proposal. These are the plans to manage the scope, schedule, budget and quality of the
project.
 Facilitating plans: It includes the development of plans to manage all other facilitating processes
required to manage the project. These include team, stakeholders, information, risk and contract
management plans.
- Outputs from this process include a formal project management plan that authorizes the project to
begin work.
iii. Implementation
- Implementation includes taking all necessary actions to ensure that the activities in the project plan
are completed and the outputs of the plan are produced.
- Implementation occurs once the final project plans have been approved by the organization and or/or
the donor agency.
- This phase many include activities such as coordinating people and other resources required to
perform the project plans and obtain the desired project outcomes.
- It also includes activities such as providing leadership, developing the project team, assuring quality,
producing progress reports, procuring resources, etc.
iv. Monitoring
- Monitoring runs across all project phases of the project life cycle.
- Traditionally the focus is on monitoring the four project constraints of scope, schedule, budget and
quality.
- Project monitoring begins with planning and ends with evaluation, having a thorough involvement of
each step in the process.
- This phase helps verify if the intervention of the project is producing the desired effects or benefits, it
helps identify unexpected consequences, and how the initial assumptions of the project have
changed contributing to the regular adjustments of the interventions to ensure the project is a
success.
v. Adapting
- In this phase, the project manager adapts its project management methods and determines what
works best for the project.

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- It refers to the changes that need to be incorporated in the original processes, approaches, strategies
and methods planned to deliver the project interventions.
- Adapting is taking corrective actions. It uses inputs from the monitoring phase that informs what
needs to be changes or modified.
- Modifying the project and making the necessary changes should occur at the end of each project
delivery, as each delivery provides an opportunity to reflect on the success or failures and provides
important lessons that need to be incorporated on the next project deliverable.
vi. Closing
- The closing phase of the project is when the project has achieved the planned objectives and all
deliverables have been produced. In some instances, project may be closed earlier for funding,
security and other reasons.
- During closure the project ensures that all administrative tasks have been completed including all
contracts and staff's departure is arranged or they are reassigned to other projects.
- All project documentation is properly cataloged and its access made available to the organization and
the donor.
- The last step in the closure phase includes the project evaluation, which usually may include audit
evaluations, donor evaluation, or internal evaluations conducted by the organization or the project.
Project Design
- Project design is an early phase of the project where a project’s key features, structure, criteria for
success, and major deliverables are all planned out.
- Project design includes:
 The systematic identification and prioritization of problems and opportunities to be addressed
through development projects
 The identification of a hierarchy of project goals and objectives linked by causal relationships
 The planning of solutions in terms of inputs, activities, outputs, effects and impacts, and
 The assessment of project outcomes.
Outline of project design methods
Phases of project
design
Key steps
1.Holistic Appraisal - Identification of target population
- Needs assessment: Problems and causes
- Disaggregation: Defining target population in terms of different socio-economic
groups and identifying most vulnerable groups
- Stakeholder assessment
- Institutional assessment
- Gender analysis
2.Analysis and
synthesis
- Problem identification
- Cause-effect analysis
3.Focused strategy - Selecting specific causes for the project to address
- Developing interventions for each selected cause
- Constructing project logic model
- Identifying key assumptions and key questions
- Identifying and developing responses to unintended impacts
4.Defining project - Identifying project goals
- Linking goal statements and interventions

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- Developing operational definitions
- Identifying indicators for each level in the hierarchy
- Setting targets and benchmarks
- Identifying outputs, activities and inputs
- Developing monitoring and evaluation plan
The Project Management Cycle
The project management phases follow a cyclical approach throughout the life of the project. The cycle
represents a continuous process in which each phase provides the foundation for the next.
- The project management cycle allows for a constant, iterative process by which the project is
constantly monitored and any required changes are reflected in the plans. This repetitive cycle
continues until all project activities and objectives have been delivered.
The project management processes
Project management processes are overlapping activities that occur at varying levels of intensity
throughout each phase of the project.
There are nine management processes on a development project that are needed to help manage the
different elements of a project. These processes can broadly be categorized into two groups:
1. Enabling processes
2. Facilitating processes
1. Enabling Processes
Enabling processes include scope, schedule, budget and quality. They are enabling because they lead to
specific objectives of the project and are the basis to define a project success; on time, under budget , as
requested by the donor and by the quantity needed by the beneficiaries.
i. Scope management
- Scope management includes the processes involved in defining and controlling what is included or
not included in the project in order to complete the project successfully.

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- This process ensures that the project has identified the goals and objectives and those have been
documented and that each objective has a well-defined set of indicators to monitor the progress.
- During this process, a scope management plan is created to help manage any changes to the
projects.
- During the scope management, the project manager develops a Work Breakdown Structure (WBS)
which is a management technique of breaking the project down into a hierarchy of work tasks which
represent the work to be done.
ii. Schedule management
- Schedule management is the development of a project schedule that contains all project activities.
- The first step in schedule management is estimating the time each one of the activities identified in
the WBS would take to be completed.
- A network diagram tool is used to graphically display the activity sequence and dependencies.
- Monitoring the schedule is an ongoing task; as each activity is performed the project manager must
review the progress made against baseline and determine what schedule variances have occurred.
- Another element of schedule management is the process to control schedule changes arising from
certain contingencies. If the project is behind the schedule, trade-off may be made to compress the
schedule or fast tracking the activity by doing more activities in parallel.
iii. Budget management
- Budget management processes are required to ensure the project is completed within the approved
budget.
- One of the tools used during this process is using the activity based budget. It uses work breakdown
structure to estimate the value of each task or activity and then adds up the values until a total budget
is achieved.
- With this technique the project can determine the cost of each objective and total cost of the project.
iv. Quality management
- Quality management is the process to ensure that the project will satisfy the needs of the
beneficiaries.
- During the quality management process, the project manager develops a quality management plan
which identifies the quality standards that are relevant to the project.
- The second process includes quality assurance which includes quality audits and measure of
compliance with quality standards.
- The third process in quality management is quality control in which results of the deliverables are
measured to see if they meet quality standards.
- The final process is quality improvement in which ways are identified to improve the quality and
eliminate the factors that compromise quality.
2. Facilitating Processes
The facilitating process areas are team, stakeholder, information, risk, and contract management, they
are facilitating areas because they assist and make possible for the project to achieve its objectives.
i. Team Management
- Team management includes the processes required to make the most effective use of the people
involved in the project.
- The first step is identifying the roles, responsibilities and reporting relationships.
- The second step is getting the people that will be assigned to the project.

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- The important step in team management is to develop the team by improving hard and soft skills
through training and other means.
- Part of team management also includes team evaluation.
ii. Stakeholder management
- Stakeholder management includes the processes of stakeholder analysis, planning, and
communication.
- Stakeholder Analysis is the technique used to identify who are the project stakeholders, the next step
is to identify their level of interest and influence in the project, and identify their fears and concerns
about the project.
- The final step is to develop a good understanding of the most important stakeholders and develop a
communications strategy and a stakeholder map that will help manage the relationships.
iii. Information management
- Information management includes the processes required to ensure timely and appropriate
generation, collection, dissemination, storage and ultimate disposition of project information.
- The essential step of information management process is to define the project's information needs,
when it is required and how the information will be collected used and distributed.
- Development of communication plan is the key component of the information management process.
iv. Risk management
- Risk management includes the processes concerned with identifying, analyzing and responding to
project risk.
- There are four stages to risk management process; risk identification, risk analysis and quantification,
risk response, risk monitoring and control.
- Risk identification involves identifying potential project risks and documenting their characteristics.
- In the next step, the importance of identified risk is analyzed and prioritized. The probability of
occurrence of risk and its impact on project objectives is analyzed.
- Risk response focuses on identifying strategies for minimizing each risk and developing actions to
implement that strategy.
- Risk monitoring and control keeps track of the identified risk, residual risks and new risks.
v. Contract management
- Contract Management includes the processes required to acquire goods and services needed by the
project from third parties.
- This may include processes such as developing the procurement documents such as request for
proposal (RFP), developing the selection criteria and contract terms.
- It also involves the process of obtaining quotations, bids or proposals and selecting the vendor and
awarding the contract.
- Managing the relationship with the suppliers, monitoring contract performance and settlement of
contract are also very important part of contract management process.

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UNIT 3: PROJECT PLANNING TOOLS AND APPLICATION
Logical Framework Analysis
The Logical Framework Approach (LFA) is an analytical process and set of tools used to support
objectives-oriented project planning and management. It provides a set of interlocking concepts which are
used as a part of an iterative process to aid structured and systematic analysis of a project or programme
idea.
Link between LFA and Project Cycle Management
The Logical Framework Approach (LFA) is a core tool used within Project Cycle Management.
- It is used during the identification stage of PCM to help analyze the existing situation, investigate the
relevance of the proposed project and identify potential objectives and strategies;
- During the formulation stage, the LFA supports the preparation of an appropriate project plan with
clear objectives, measurable results, a risk management strategy and defined levels of management
responsibility;
- During project/ programme implementation, the LFA provides a key management tool to support
contracting, operational work planning and monitoring; and
- During the evaluation and audit stage, the Logframe matrix provides a summary record of what was
planned (objectives, indicators and key assumptions), and thus provides a basis for performance and
impact assessment.
Process of LFA Planning
The LFA planning is composed of two stages: 1. Analysis stage and 2. Planning Stage
1. Analysis Stage
i. Stakeholder Analysis
- The stakeholder analysis is done to explicitly understand and recognize the concerns, capacities,
interests and needs of different groups in the process of problem identification, objective setting and
strategy selection.
- The key questions asked in stakeholder analysis are
o Whose problem or opportunities are we analyzing
o Who will benefit or loose-out from a proposed intervention?
- Stakeholder analysis matrix and SWOT analysis are widely used.
ii. Problem Analysis
- Problem analysis identifies the negative aspects of an existing
situation and established the cause and effect relationships between
the identified problems.
- Problem analysis is the most critical stage of project planning, as it
guides all subsequent analysis and decision making on priorities.
- Problem analysis are done through participatory brainstorming exercises with stakeholders where
root causes are identified and arranged in a problem tree by establishing cause-effect relationships.

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iii. Analysis of Objectives
- In this stage negative situations of the problem tree are converted into solutions and expressed as
positive achievements (objectives).
- The objectives are presented in a diagram (objective tree) showing a means to ends hierarchy.
iv. Analysis of strategies/ alternatives
- The purpose of this analysis is to identify possible alternative options/strategies, to assess the
feasibility of these options and agree upon one project strategy.
- Out of the possible strategies of interventions shown by objective tree, the most pertinent and feasible
one is selected on the basis of a number of criteria, including relevance, likelihood of success,
resource availability, etc.
2. Planning Stage
i. Preparing Log Frame Matrix
- The results of analysis stage are presented and further analyzed in the Log frame matrix.
- The log-frame consists of a matrix with four columns and four (or more) rows, summarizing the key
elements of a project, namely
o The project’s hierarchy of objectives
o How the project’s achievements will be monitored and evaluated (indicators and sources of
verification)
o The project environment and key factors critical to the project’s success (assumptions)
- The log frame also provides the basis on which resource requirements (inputs) and costs (budget)
are determined
Components of Log frame Matrix
a. First Column: Intervention Logic
- The intervention logic should identify what the project intends to do and show a causal relationship
between the different levels of objectives.
- It includes:

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o Overall Objective: It is the higher-order objective that is to be achieved through the proposed
project.
o Purpose: It should describe the intended effects of the project, the immediate objective for the
direct beneficiaries.
o Results/Outputs: The results should be expressed as the targets which the project management
must achieve and sustain within the life of the project.
o Activities: Activities should define how the team will carry out the project. It provides an indicative
list of activities that must be implemented to accomplish each result.
b. Second Column: Objectively Verifiable Indicators
- The objectively indicators should describe the project’s objectives in operationally measurable terms,
specify the performance standard to be reached in order to achieve the goal, the purpose and the
outputs.
- Therefore OVIs should be specified in terms of quantity, time, target group and place.
c. Third Column: Source of Verification
- The source of verification, also called means of verification should be specified at the time of
formulation of indicators.
- The source of verification should specify what sources of information should be made available, from
where and how regularly.
d. Fourth Column: Assumptions
- Assumptions are external factors that have the potential to influence the success of a project, but lie
outside the direct control of project managers.
- Most of the assumptions are identified during the analysis phase highlighting number of issues that
will impact on project’s environment.
Program Evaluation and Review Technique (PERT)
Program (Project) Evaluation and Review Technique (PERT)/ Critical Path Method (CPM) is a project
management tool used to schedule, organize, and coordinate tasks within a project. It is basically a
method to analyze the tasks involved in completing a given project, especially the time needed to
complete each task, and to identify the minimum time needed to complete the total project.
PERT/CPM planning involves the following steps
i. Identifying specific activities and precedence relationship
- This step involves identifying all the activities that are required to complete a project.
- It is helpful to list the tasks in a table that in later steps can be expanded to include information on
sequence and duration.
- The immediate predecessor(s) for each activity is also identified.
ii. Estimating the required time for each activity
- A distinguishing feature of PERT is its ability to deal with uncertainty in activity completion time.
- For this, PERT takes into account three different types of estimates of the duration of an activity.
- Weeks are commonly used unit of time for activity completion, but any consistent unit of time can be
used.

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 Optimistic time (OT): generally the shortest time in which the activity can be completed. It is
common practice to specify optimistic time to be three standards deviations from the mean so
that there is a approximately a 1% chance that the activity will be completed within the optimistic
time.
 Pessimistic time (PT): the longest time that an activity might require. Three standard deviations
from the mean is commonly used for the pessimistic time.
 Most likely time (MT): the completion time having the highest probability.
- PERT assumes a beta probability distribution for the time estimates. For a beta distribution, the
expected time for each activity can be approximated using the following weighted average:
Expected time (ET) = (OT + 4  MT + PT) / 6
- This expected time may be displayed on the node of the network diagram.
- To variance of each activity completion time is given by
Variance = [ (PT – OT) /6]
2
iii. Constructing a network diagram
- Using the activity sequence information, a network diagram can be drawn showing the sequence of
serial and parallel activities using the precedence relationship.
- Each activity in the project is represented in a network diagram by node and the arcs are used to
show the precedence relationship that exists between the activities.
- In particular, the node for each activity with immediate predecessor has an arc coming in from each of
these predecessors.
iv. Determining the critical path
- The critical path is determined by adding the times for the activities in each sequence and
determining the longest path in the project.
- The critical path determines the longest path in the project.
- The scheduling for CPM begins by determining when the individual activities can start and finish (at
earliest) with no delays.
- The starting and finishing times of each activity if no delays occur anywhere in the project are called
the earliest start time and the earliest finish time of the activity. These times are represented by the
symbols
 ES = Earliest start time (is equal to largest of the earliest finish time of its immediate predecessor)
 EF – Earliest finish time (is equal to smallest of the earliest start time of its immediate successor)
Where, EF = ES + Expected time of the activity(ET)
- Another way of scheduling focuses on determining how much later can an activity start or finish
without delaying project completion.
- This process involves calculating latest start and latest finish time.
- The latest start time for an activity is the latest possible time that it can start without delaying the
completion of the project and the latest finish time is the latest possible time that it can finish without
delaying the completion of the project. In symbols,
 LS = Latest start time (is equal to largest of the latest finish time of its immediate predecessor)
 LF = Latest finish time (is equal to smallest of the latest start time of its immediate successor)
Where, LS = LF – Expected time of the activity
- The slack for an activity is the difference between its latest finish time and its earliest finish time
Slack = LF- EF

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v. Updating the PERT/CPM chart
- The PERT/CPM chart can be adjusted as the project progresses.
- As the project unfolds, the estimated times can be replaced with actual times.
- In case where there are delays, additional resources may be needed to stay on schedule and the
PERT chart may be modified to reflect new situation
PERT/CPM Example for hypothetical project to increase contraceptive use
Let us suppose a NGO is planning to organize a family planning project to increase contraceptive
prevalence rate. First we identify all project activities, their precedence relationship as well as times for
each activity as follows:
SN Activities Predecessors
Optimistic
time (0)
Pessimistic
time (P)
Most
likely
time
(M)
St.
dev
Var
A
Select administrative and
technical staff
- 0 2 1 0.33 0.11
B
Conduct training need
assessment of service providers
A 6 10 8 0.67 0.44
C
Provide training to service
providers
B 24 24 24 0.00 0.00
D
Procure and purchase FP
commodities and IP supplies
A 8 12 10 0.67 0.44
E Hire community mobilizers A 4 6 5 0.33 0.11
F
Orient community mobilizers on
inter-personal communication
E 2 4 3 0.33 0.11
G
Conduct household IPC
sessions and refer potential
clients for counseling at HF
F, I 12 12 12 0.00 0.00
H
Design flip charts on FP for IPC
sessions
A 4 8 6 0.67 0.44
I Print and receive flip charts H 4 6 5 0.33 0.11
J
Organize mobile FP camps for
LARCs and sterilization
C,D, G 4 6 5 0.33 0.11
Now, these activities can be presented in the network diagram as per their precedence relationship

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Identifying critical path
Here, in this network diagram, the path ABCJ, requires the longest duration (38 weeks) for project
completion. Therefore, this path is the critical path of the project.
For, identifying critical paths in the network diagram, we calculate earliest start and finish times by forward
pass method and latest start and finish times by backward pass method s as shown in the table below:
SN Activities
Earliest
Start
(ES)
Latest
Start
(LS)
Earliest
Finish
(EF)
Latest
Finish
(LF)
Slack
(LS-
ES)
A Select administrative and technical staff 0 0 1 1 0
B
Conduct training need assessment of service
providers
1 1 9 9 0
C Provide training to service providers 9 9 33 33 0
D
Procure and purchase FP commodities and IP
supplies
1 23 11 33 22
E Hire community mobilizers 1 1 6 6 0
F
Orient community mobilizers on inter-personal
communication
6 6 9 9 0
G
Conduct household IPC sessions and refer
potential clients for counseling at HF
9 21 21 33 12
H Design flip charts on FP for IPC sessions 1 10 7 16 9
I Print and receive flip charts 7 16 12 21 9
J
Organize mobile FP camps for LARCs and
sterilization
33 33 38 38 0
Here, only four activities (D,G,H and I) have a slack time. Other activities are critical and need special
consideration so that project does not get delayed.

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Approximating the probability of meeting the deadline
Here we have the total duration of project as 38 weeks (T) with variance (var) = 0.67 (added for critical
path)
Suppose, the deadline for the project (d) is 40 weeks, then the number of deviations by which deadline
exceeds scheduled date is
Z = (d-s)/var
Z = 2/ 0.67 = 2.44
Therefore, by using Z-table, the probability of meeting the deadline is 0.9927 i.e 99.27%
Tips for calculations:
i. Use formula EF= ES+ET (forward pass method ) and LS = LF-ET( backward pass method).
ii. Slack = LF-EF or LS-ES
iii. Earliest start time is equal to largest of the earliest finish time of its immediate predecessor.
iv. Latest finish time is equal to smallest of the latest start time of its immediate successor.
Significance of PERT/CPM
i. Logical Planning
- It compels managers to plan their projects critically and analyze all factors affecting the progress of
the plan.
- The network diagram helps translation of highly complex project into a set of simple and logical
arranged activities.
ii. Analyze and probe all possibilities and uncertainties
- It forces managers to analyze and probe all possibilities, uncertainties and pitfalls. This avoids
surprises and wastages.
- All factors affecting the successful completion of project are analyzed in advance
iii. Tool for forecasting
- It provides a tool for forecasting the impact of schedule changes.
- The difficulties and problems that can be reasonably expected to crop up during the course of
implemented can be foreseen well ahead of actual implementation.
- Delays and hold-ups during the course of execution gets minimized. Corrective action can also be
taken well in time.
iv. Attention on critical activities
- It mainly focuses attention on critical activities to speed them up. It permits control by exception, to
ensure most effective use of resources.
v. Resource allocation
- PERT/CPM shows critical activities in which resources must be used up.
- Using resources on non-critical activity will not shorten the duration of the project.
- Extra resources (cost) can be used to reduce the project completion time. This is called project
crashing.
vi. Project control
- The project can be controlled by checking progress against the schedule, assigning and scheduling
human resources and equipments.

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Limitations
i. The costs may be higher than the conventional methods of planning and control.
ii. Uncertainty about the estimate of time and resources. These must be assumed and the results can
only be as good as the assumptions.
iii. In larger projects, there can be potentially hundreds or thousands of activities and individual
dependency relationships.
Comparison of PERT AND CPM
Basis PERT CPM
Orientation The results of calculations are
considered in terms of events. It is
therefore activity oriented
The results of calculations are considered
in terms of activities. It is therefore activity
oriented
Time estimates - PERT is probabilistic model
- Three kinds of estimates are taken to
determine the period of activity,
- It considers uncertainty in time
- CPM is a deterministic model.
- Single estimate is considered for
determining the duration of activity.
- It does not consider uncertainty in time.
Application Used where times cannot be estimated
with confidence, unfamiliar or new
activities
Used where times can be estimated with
confidence, familiar activities
Focus In PERT, more emphasis is on
shortening and controlling project time.
Managers schedule and co-ordinate
various activities so that the project
can be completed on scheduled time
CPM places dual emphasis on time and
cost and evaluated the trade-off between
project cost and project time.
Managers manipulate project duration by
employing additional resources so that
project can be shortened at an optimal
cost.
Appropriate for High precision time estimate One time estimate
Critical and non-
critical activities
No differentiation Differentiated
Gantt Chart
- A Gantt chart is a type of bar chart, devised by Henry Gantt in the 1910s, that illustrates a project
schedule.
- Gantt chart provides an excellent overview of a project and enables the project manager to sequence
research activities in the right order.
- Such chart shows activities as blocks or bars over time.
- It documents what is to be accomplished and when each step will take place. It also acts as
documentation for an implementation plan.
- It is an intuitive chart used to show time allocation for key tasks, and it supports monitoring of
activities during the management phase.
- In Gantt chart, the time taken by an activity is represented by a horizontal line, the length of which is
proportional to the duration of activity.
- As a rule, the time in the chart should flow from left to right and the activities be listed from top to
bottom.

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Advantages
- It ensures that all activities are carefully and sequentially planned for and that the total duration or
activity times are considered.
- Gantt chart is easy to read pictorial chart and is the best tool to use for communicating to team
members what they need to do within a given time frame.
- A Gantt chart is helpful when monitoring a project's progress with respect to their timeline. Using
charts during critical projects allows both project managers and participants to track team progress,
highlighting both big wins and major failures.
- It is easier to show possible overlapping of activities than with either a CPM or PERT network.
Limitations
- It does not show inter-dependencies between different activities, and thus impact of delay of one
activity over the other cannot be assessed.
- Analytical integration of time, work and resource is quite difficult.
- If the time schedule is changed, it is difficult to change the length or position of bars of a Gantt chart.
- Gantt charts do not make a link between time and cost.
- Gantt charts do not give information about the size of the project. This makes it difficult to estimate
resources.
- Gantt chart is essentially a manual graphical procedure. So, it is not suitable for large projects.
UNIT 4: PROJECT QUALITY MANAGEMENT
Introduction to project quality
The understanding of project quality may vary widely. One source for definition of quality comes from the
donor. The donors may have certain standards of what is expected from the project, and how the project
delivers the expected benefits to the beneficiaries.
Another source of definition comes from the beneficiaries. The project team must be able to understand
how the beneficiaries define quality from their perspective.
In general, a broad definition of quality entails following characteristics:
Characterisitcs Description
1 Functionality - The operations of the clinical equipment should function as expected
2 Reliability - Service or product should perform as intended under normal conditions without
unacceptable failures.
- E.g blood testing materials should be able to provide the information in a
consistent manner that will help identify critical diseases
3 Relevance - The product or service should be applicable and relevant to meet the actual
needs of the beneficiaries
4 Timeliness - The product or service should be delivered in time to solve the problems
5 Consistency - The project should deliver services in the same way for every beneficiary.
- E.g. clinical tests should be done using the same procedure for every patient

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Project Quality Management
Quality management is the process for ensuring that all project activities necessary to design, plan and
implement a project are effective and efficient with respect to the purpose of the objective and its
performance.
- Project quality management must address both the management of the project and the product of the
project. Failure to meet quality requirements in either dimension can have serious negative
consequences for any or all of the project stakeholders.
- For example: Meeting customer requirements by overworking the project team may produce negative
consequences in the form of increased employee turnover
- Quality management is a continuous process that starts and ends with the project.
- Project quality management consists of three main processes
1. Quality Planning
2. Quality Assurance
3. Quality Control
1. Quality Planning
- Quality planning involves identifying which quality standards are relevant to the project and describing
how to satisfy them.
- Quality planning should be performed in parallel with the other planning processes. For example,
proposed changes in the deliverables to meet identified quality standards may require cost or
schedule adjustments and a detailed risk analysis of the impact to plans.
i. Inputs to quality planning
- Quality policy
- Scope baseline: The scope baseline includes project scope statement, work breakdown structure
- Cost and schedule baseline
- Standards and regulations: The project management team must consider any area-specific standards
or regulations that may affect the project.
ii. Tools and techniques for quality planning
- Project quality planning involves several tools and techniques such as
 Cause effect diagram
 Flow charts
 Check sheets
 Pareto diagram
 Control charts
 Scatter diagram
- Various techniques such as benchmarking, meetings and cost-benefit analysis are used.
iii. Outputs from quality planning
- Quality management plan
- Process improvement plan
- Quality metrics
- Operational definitions
- Quality checklists

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2. Quality Assurance
- Quality assurance is all the planned and systematic activities implemented within the quality system
to provide confidence that the project will satisfy the relevant quality standards.
- Assurance may be provided to the project management team (internal quality assurance) or it may be
provided to the customer and others not actively involved in the work of the project (external quality
assurance).
Techniques for quality assurance
i. Quality audits
- A quality audit is a structured, independent process to determine if project activities comply with
organizational and project policies, processes and procedures.
- The objectives of quality audit may include:
 Identification of good and best practices being implemented
 Identification of non-conformity, gaps and shortcomings
 Provide assistance in positive manner to improve implementation of processes to help the team
raise productivity
- The subsequent effort to correct any deficiencies should result in a reduced cost of quality and an
increase in client acceptance of the project's product or service.
- Quality audits may be scheduled or random, and may be conducted by internal or external auditors.
ii. Process analysis
- Process analysis follows the steps outlined in the process improvement plan to identify needed
improvements.
- This analysis also examines problems experienced, constraints experienced, and non-value-added
activities identified during process operation.
- Process analysis includes root cause analysis—a specific technique used to identify a problem,
discover the underlying causes that lead to it, and develop preventive actions.
3. Quality control
- Quality control involves monitoring specific project results to assess performance and recommend
necessary changes.
- The key benefits of this process include:
 identifying the causes of poor process or product quality and recommending and/or taking action
to eliminate them; and
 Validating that project deliverables and work meet the requirements specified by key stakeholders
necessary for final acceptance.
- Quality control should be used during the execution and closing phases of the project.
- Various tools such as project quality management plan, quality metrics and quality checklists, project
documents (e.g. agreements) are used to control quality.
Tools and Techniques of quality control
i. Inspection
- An inspection is the examination of work product to determine if it conforms to documented
standards.
- Inspection generally includes activities such as measuring, examining and testing.
- It may be conducted at any level. For example, the results of a single activity can be inspected, or the
final product of the project can be inspected.
- Inspections may be in the form of reviews, peer reviews, audits or walkthroughs.
- Inspections are also used to validate defect repairs.

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ii. Statistical sampling
- Statistical sampling involves choosing part of a population of interest for inspection (e.g., selecting ten
engineering drawings at random from a list of 75.
iii. Basic quality tools such as cause effect diagram, flow charts, check sheets, pareto diagram, control
charts, scatter diagram, etc.
4. Quality improvement
- Quality improvement includes taking action to increase the effectiveness and efficiency of the project
to provide added benefits of the project stakeholders.
- Quality assurance provides an umbrella for continuous quality improvement.
- Continuous process improvement reduces waste and eliminates activities that do not add value.
Techniques of quality improvement
i. Change request
- Change request are used to take corrective action, preventive action or to perform defect repair.
ii. Process adjustments
- Process adjustments involve immediate corrective or preventive action as a result of quality control
measurements.
Creating a Project Quality Plan
Project quality planning is one of the key components of strategic project quality management. Broadly,
project quality planning involves following steps.
i. Gathering input data
- For developing a project quality plan, it's required to gather input information, including the scope
statement, risk register, standards and regulations and the project implementation schedule.
- The quality management team, under supervision of project manager needs to request all the
necessary information and collect requirements to the product.
ii. Analyzing data and indentifying quality activities
- As soon as the input information is received, the next step for project quality planning team is to
conduct a cost-benefit analysis.
- This analysis will help review all the costs required in the project and all the benefits stated during the
project set up phase.
- The tem should develop various quality planning activities intended for meeting quality requirements
within the planned costs and the stated benefits.
- The quality activities should be aligned with the expectations of the clients/customers.
iii. Setting quality metrics and developing checklists
- Once project quality management plan have been developed and approved by the project manager,
the next step is to establish quality metrics.
- The team needs to select specific product attributes and define how to control these attributes during
the project implementation process.
- Also checklists may be developed to verify that a set of required steps has been performed.

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iv. Developing quality assurance and control plan
- There are two critical processes within the project quality management: quality assurance and control
- The quality planning team can use checklists and templates to ensure consistency in quality metrics
and to take control over expected quality performance.
a. Plan for quality assurance
- It is important to choose methods and tools for assuring expected quality levels during project
implementation.
- Plan for quality assurance may include
 Schedules for quality audit and reviews
 Other techniques for quality assurance
 Assignment of independent person for conducting quality audits
b. Plan for quality control
- Quality control plan should specify a schedule and sequences of quality control activities.
- The tools and techniques for quality control such as peer reviews, deliverable reviews, etc. may
also be specified.
v. Designing improvement plan
- The final step in developing a project quality plan is about making an improvement plan that details
actions for analyzing quality performance and identifying activities for enhancing project/product
value.
- Such a plan usually includes steps and reasons for applying changes to project boundaries, product
configuration, process metrics, or/and project objectives as well.
- This document should be approved by the project manager.
Project Quality Tools
There are several tools that can be used to control quality on a project. Some of these tools include:
i. Cause and effect diagram
- It is also known as fishbone diagrams or as Ishikawa diagrams.
- The problem statement placed at the head of the fishbone is used as a starting point to trace the
problem’s source back to its actionable root cause.
- The problem statement typically describes the problem as a gap to be closed or as an objective to be
achieved.
- The causes are found by looking at the problem statement and asking “why” until the actionable root
cause has been identified or until the reasonable possibilities on each fishbone have been exhausted
ii. Check sheets
- Check sheets, which are also known as tally sheets and may be used as a checklist when gathering
data.
- Check sheets are used to organize facts in a manner that will facilitate the effective collection of
useful data about a potential quality problem.
- They are especially useful for gathering attributes data while performing inspections to identify
defects
iii. Pareto Charts

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- Pareto charts are based on Pareto’s rule, which states that 80 percent of the problems are often due
to 20 percent of the various causes.
- The assumption is that most of the results in any situation are determined by a small number of
causes and helps identify the vital few contributors that account for most quality problems.
- The chart is a form of histogram that orders the data by frequency of occurrence; it shows how many
defects were generated by a type of category of identified cause.
iv. Control Chart
- Control Charts; is a graphical display of data that illustrates the results of a process over time.
- The purpose of a control chart is to prevent defects, rather than detect them or reject them. The chart
allows determining whether a process is in control or out of control over specified length of time.
- Control charts are often used to monitor the production of large quantities of products, but can also be
used to monitor the volume and frequency of errors in documents, cost and schedule variances and
other items related to project quality management.
- Control charts can also be used to the project management areas, such as schedule and budget
control, to determine whether the costs variances or schedule variances are outside the acceptable
limits set by the donor.
v. Scattered diagram
- Scatter diagrams, plot ordered pairs (X, Y) and are sometimes called correlation charts because they
seek to explain a change in the dependent variable, Y, in relationship to a change observed in the
corresponding independent variable, X.
- The direction of correlation may be proportional (positive correlation), inverse (negative correlation),
or a pattern of correlation may not exist (zero correlation).
- If correlation can be established, a regression line can be calculated and used to estimate how a
change to the independent variable will influence the value of the dependent variable.
vi. Other tools
- Benchmarking: Setting a quality standard reference
- Quality meetings
- Histogram
- Flowchart
- Force field analysis

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UNIT 5: SOCIAL ENTREPRENEURSHIP
Introduction to social entrepreneurship
- Broadly social entrepreneurship refers to innovative activity with a social objective.
- Social entrepreneurship can be defined as innovative, social value creating activity that can occur
within or across the non-profit, business or government sectors.
- The underlying drive for social entrepreneurship is to create social value, rather than personal and
shareholder wealth and that the activity is characterized by innovation or creation f something new
rather than replication of existing enterprises and practices.
It explicitly aims to improve personal and collective well-being in reducing inequalities and increasing
social cohesion, as well as benefitting the community, mainly through:
- Creation of decent jobs for marginalized and excluded people.
- Reintegration of people with difficulties into the labour market.
- Provision and delivery of collective goods and social services for low income individuals
- Increase of social capital
- Dissemination of social interventions
Differences between commercial and social entrepreneurship
Basis of
differences
Commercial Entrepreneurship Social Entrepreneurship
Mission - Economic activity to generate
profits for entrepreneur(s) and
investors
- Social value for recipient of public goods
Offering - New products and services - New innovations & solutions to social
problems
Type of
change
sought
- Market-related variables, i.e.
consumption patterns, demand,
supply, pricing or promotional
elements are targeted
- Social change is brought about by changing
social philosophy and dynamics
Scope for
opportunities
- Profitable and high-growth
opportunities are relatively hard to
capture
- Scope for opportunities are relatively wide
because it can pursue ventures that are
financially self-sustaining as well as those
that require donor subsidies
Resource
mobilization
- Commercial entrepreneurs often
have the financial resources or
incentives to recruit and retain
talent
- Social entrepreneurs are rarely able to pay
market rates for key hires
- Social enterprises often rely upon volunteers
to serve key functions
Market-
selection
mechanism
- More intense
- Operates well in perfect
competition
- Less intense
- Social entrepreneurship emerge when there
is social-market failure
Performance
measurement
- Performance measurement is
easy as the process rely on
relatively tangible and quantifiable
measures
- Challenge of measuring social change is
great due to non-quantifiability,
multicausality, temporal dimensions and
perceptive differences of the social impact
created
Metric for
effectiveness
- Profit
- Shareholder value
- Social change
- Social needs met
- Social impact

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- Social and commercial entrepreneurship is not dichotomous, but rather more accurately
conceptualized as a continuum ranging from purely social to purely economic.
- Even at the extremes, however, there are still elements of both. That is, charitable activity must still
reflect economic realities, while economic activity must still generate social value.
Examples of areas with entrepreneurship potential
Areas Potential public health entrepreneurship ventures
Education and social services Tutoring centre
Environment Waste recycling
Fitness and recreation Health clubs, employee fitness programs
Holistic health Naturopathic centres
Nutrition Healthy supermarket, Food co-ops
Product development and social marketing Sanitary pads
Technology Medical drones, tele-medicine, m-health
Media Public health journals, newsletter, health
programming
Frameworks for Social Entrepreneurship
Process Framework of Social Entrepreneurship
- The process framework of social entrepreneurship is based on three propositions:
i. Proposition 1: The motivation for social entrepreneurship is to address existing social gaps.
ii. Proposition 2: Social entrepreneurship is about creating opportunities to achieve social missions.
iii. Proposition 3: The desired results of social entrepreneurship are social awareness and
empowerment within the community.
- The framework highlights the circularity of the process, from the initial motive of embarking in social
entrepreneurship, to its course of action, and finally to the resultant outcome which generate more
social entrepreneurship motives.

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PCDO Model
An analytical framework for commercial entrepreneurship, proposed by Sahlman is 1996 provides a
strong basis for understanding a framework for social entrepreneurship.
This model stresses the creation of a dynamic fit among four interrelated components: The people,
context, deal and the opportunity (PCDO)
1. People and resources
- Both commercial and social entrepreneurs must consider the managers, employees, funders, and
other organizations critical to their success, and how to capture this talent for their ventures.
- They must know the key suppliers, customers, competitors and the talent that they need to bring into
their organization.
- While social entrepreneurs are seeking to attract resources for the social good, they often should rely
on a robust network of contacts that will provide them with access to funding, board members and
management and staff, among other resources.
- To attract these resources, social entrepreneurs like their commercial counterparts must have a
strong reputation that engenders trust among its contributors, and a willingness to invest in the social
enterprise and its mission.
2. Context
- Context is defined as those elements outside the control of the entrepreneur that will influence
success or failure,
- Contextual factors include the macro-economic, tax and regulatory structure and socio-political
environment. In the social sector, these contextual factors can be equally as important as in the
commercial sector.
- Entrepreneurs must know specific types of laws and regulations affecting their ability to functions.
Laws regulating tax-exempt status or operations of non-profits and specific social policies affect the
needs or resources for certain types of social issues such as education, environment, health, etc.
- Social entrepreneurs may respond in fundamentally different ways to adverse contextual conditions
that their commercial counterparts.
- For Example: During harsh economic times, social needs tend to intensify, and many new social
enterprises may be established to serve these needs, despite an adverse funding environment.
- In some cases, an adverse context may often lead the social entrepreneur to seek to change the
context itself, as often social problems is deeply embedded in contextual factors.
3. Deal
- Deals are mutually beneficial contractual relationships between the entrepreneurial venture and all
resource providers.
- Social and commercial entrepreneurs are all seeking investors to provide financial resources, as well
as skills and talent to help them generate a return on their investments, whether financial or social.
- Deals involve the exchange of value. The value transactions in social entrepreneurship differ from
commercial entrepreneurship in kind, consumers, timing, flexibility, and measurability.
- Social entrepreneurs often have to provide value more explicitly with a much more heterogeneous set
of stakeholder, and each group is seeking or giving a distinct form of value from the relationship.
- For investors in social entrepreneurship, considerably more uncertainty is in the deal due to the fact
that there is no single factor, such as profit or investment returns, that aligns the interests and actions
of the various parties involved.

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4. Opportunity
- Opportunities in the commercial and social sectors require the investment of scarce resources with
the hope of future returns.
- The scope of opportunities for social entrepreneurs is relatively wide because they are able to pursue
ventures that are financially self-sustaining as well as those that require donor subsidies.
- The nature of opportunities in the social sectors is abundant. The demand for social entrepreneurial
programs and services usually far exceed the capacity of the social enterprises to serve these needs.
- Initial successes often lead to increased demand for the social enterprise’s programs, products, or
services, or even requests to scale or replicate the organization in some form.
Adapted framework to social entrepreneurship
While the PCDO framework is in many ways applicable to the analysis of social entrepreneurship, Austin
et al. suggested some adaptations to the framework.
- To highlight the centrality of social purpose in social entrepreneurship, this factor has been proposed
as the integrating driver of the framework.
- It is analogous to the “deal” variable in the PCDO in that it encompasses the terms of the undertaking,
but those terms need to be related to and integrated by the core social value proposition (SVP).
- The distinctive nature and central role of mission in social enterprises and the multifaceted nature of
the social value generated give the SVP a logical centrality in the framework.
- Because the mobilization of financial and of human resources for social entrepreneurship are each
quite different from commercial entrepreneurship, these resources are separated out as distinct
variables,
- To enable a more disaggregated analysis of contextual forces that seem particularly relevant to social
entrepreneurship, demographics, political, and socio-cultural factors are added to the contextual
factors presented in the original PCDO framework.
Commercial Entrepreneurship Framework
(Sahlman, 1996)
Social Entrepreneurship Framework
(Austin et al, 2006)

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UNIT 6: THE ROLE OF THE PROJECT MANAGER
Roles of project manager
i. Integrator
- Project plan development
- Project plan implementation
- Project plan monitoring and control
ii. Communicator
iii. Leader
- Facilitator
- Coordinator
The Responsibilities of the Project Manager
The project manager has the following major responsibilities in project management:
i. Planning
- Planning involves defining what the project will accomplish, when it will be completed, how it will be
implemented and monitored and who will do it.
- The project manager is responsible for creating the project plans and defining the goals, objectives,
activities and resources needed.
- The project manager is also responsible for updating the plans as new changes or modifications are
approved.
- S/he is responsible for communicating all stakeholders on the changes and ensures that the changes
are being incorporated in the activities and tasks of the project team.
ii. Organizing
- Another important responsibility of project manager is to establish a structure that will maximize the
efficiency and effectiveness of the project.
- The project manager, once the plans have been approved and distributed, has the responsibility to
build and staff the project organization that will be capable to carry out the plans.
- Here the focus is on coordination, control of activities and the flow of information within the project. In
this responsibility the project manager distributes and delegates authority to project staff.
iii. Directing
- Once the plans are made, the project organization has been determined and the project staffed, the
responsibilities of the project manager is to direct, lead and motivate the members of the project to
perform in a unified, consistent and manner.
- By directing, the project manager assumes the responsibility that the project team will follow the
vision of the project and all instructions, mandates and work orders.
iv. Controlling
- Controlling is a responsibility to ensure that the actions of the project team contribute toward the
project goals; the project manager must establish standards for performance, measure performance
and compare it with the established standards; detect variations and make the necessary corrections.
This responsibility ensures that the project is on track.

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Managerial Skills for Project Manager
In order to perform the functions of management, and to assume multiple roles, project managers must
be skilled in both the science and the art of project management. There are several managerial skills that
are essential to successful project management:
i. Process Skills
- The project manager must have skills to use management techniques, procedures and tools.
- S/he must know how to interpret a budget report, know how to read a statistical analysis of a project
baseline data, and understand the correct application of the different management methodologies.
- In addition to the above the project manager is expected to have skills in the effective use of
information and communication technology to help him/her be more effective in her work.
ii. Problem Solving Skills
- Problem solving skills make use of different techniques, and by using these techniques the project
manager can start to tackle problems which might otherwise seem huge, overwhelming and
excessively complex.
- Techniques such as breaking problems down into manageable parts, identifying root causes of
problems, analyzing strengths, weaknesses, opportunities & threats, must be mastered in order to
solve problems.
- Additionally the project manager needs synthesis and analysis thinking skills.
iii. Negotiation Skills
- Project managers spend a large portion of their time negotiating for resources, equipment or other
support, and if they do not have strong negotiating skills, their chances of being successful are greatly
reduced.
- Depending on the projects structure and the level of authorization the project managers has to
negotiate on behalf of the organization.
- Negotiation usually include making trade-offs when stakeholders request changes or modifications to
the project and its resources; negotiation also includes dealing with vendors or consultants who are
bidding for a specific good or service.
- Negotiation skills also come handy when dealing with project beneficiaries and building agreements
that will benefit both the project and the beneficiaries.
iv. Conceptual Skills
- Project managers with good conceptual skills are well aware of how various elements of the project
environment or ecosystem interrelate and influence one another.
- They require skills to understand relationships between projects, the development organization, the
donor organization, the beneficiaries and its environment, and how changes in one part of the
environment affect the project.
- Conceptual skills are necessary to appropriately deal with project politics and to acquire adequate
support from top management.
v. Interpersonal skills

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Interpersonal Skills for Project Managers
- Interpersonal skills represent the ability of a project manager to work effectively as a project team
leader and to build cooperative effort with the project members and all other groups with which the
project team interacts.
- Good interpersonal skills build trust and confidence between members of the project team and help
create good relations and working environment.
- Major interpersonal skills include: communication, team building, coaching, motivating, training,
directing, persuading/influencing, negotiating, and supporting those involved in the project.
Some of the important interpersonal abilities required to handle projects are discussed below:
i. Leadership Skills
- Leadership skills are essential for project managers because project managers must influence the
behavior of others.
- Throughout the project, the project team leaders are responsible for establishing and maintaining the
vision, strategy and communications; fostering trust and team building; mentoring, monitoring and
evaluating the performance of the team and the project.
ii. Communication Skills
- It has been estimated that project managers spend 80 percent of their time just communicating: with
the project team, the clients, functional managers, and upper management.
- Good communications skills include verbal and non verbal communications that enables a project
manager to convey project information in a way that it is received and understood by all project
stakeholders.
iii. Decision making
- There are four basic decision styles normally used by project managers: command, consultation,
consensus and coin flip (random).
- The project managers should be familiar with all four styles because at some point, decisions will
have to be made from each style.
- The leaders should also be able to take considerations of the factors that affect the decision making
i.e. time constraints, trust, quality and acceptance.
iv. Conflict management
- The project manager must be able to identify the causes for conflict and then actively manage the
conflict thus minimizing the potential negative impacts.
- Project managers should strive to establish a collaborative approach among the team members
involved in order to fully resolve the problems.
- In situations where a collaborative approach is not possible, the project manager must then revert to
other conflict management styles: avoidance, forcing, accommodation, collaboration or compromise.
v. Negotiation
vi. Team building
vii. Motivation
viii. Influencing
ix. Coaching

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Power and influence of project manager
Project managers are vested authority on the project by the organization, the authority provides a level of
influence on the project and its members and the project manager can use to establish its power.
Power is the ability to influence the behavior of the project team to do the things they will not normally do.
A project manager can use five different types of power to influence the team member.
i. Coercive power
- Coercive power is a negative approach to power. It uses some form of punishment or penalty treat to
get people to do things.
- A project manager can threaten to fire a team member if they don’t follow a specific assignment or
change a behavior.
- This approach is usually used as a last resort when all other forms of influence have failed and should
be done in coordination with the organizations management and never used as the only influence
factor due to its negative impact on the team’s motivation.
ii. Reward power
- Reward power involves the use of incentives such as money, status, promotions, official recognition
or special work assignments.
- These are used as a reward to get some desired behavior or assignment.
- The project manager can use these type of incentive based on the resources available to the project
and polices of the organization.
iii. Expert power
- Expert power is the use of personal expertise to influence the team to follow directions.
- If the team recognizes the project manager as a relevant expertise and has demonstrated this
knowledge, then they will be more likely follow the project manager’s directions or suggestions on
how work must be done.
iv. Legitimate power
- Legitimate power is based on authority, and uses the power vested on the project manager by the
organization to make decisions without involving the project team.
- Excessive use of this type of power can lead to project failure, the role and position plus the support
given by management to the project manager are part of this part of type of power.
v. Referent power
- Referent power is based on the personal charisma of the project manager.
- It is based on the leadership qualities of the project manager and how he/she has built a good level of
trust with the team. This is a type of power that must be earned before it is used and it’s the best type
of power to influence the team.

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MISCELLANEOUS
Project Risk Analysis and Management
Project risk analysis is a process which enables the analysis and management of the risks associated
with a project.
- If properly undertaken, it will increase the likelihood of successful completion of a project to cost, time
and performance objectives.
1. Risk analysis
- Risk analysis process involves two sub-stages: a qualitative analysis and quantitative analysis.
i. Qualitative risk analysis
- A qualitative analysis allows the main risk sources or factors to be identified.
- The first phase of the qualitative risk analysis is identification. Identification can be achieved by:
 Interviewing key members of the project team
 Organizing brainstorming meetings with all interested parties
 By using the personal experience of the risk analyst.
 Reviewing past project experience if appraisal records are available.
- All of the above methods are greatly enhanced by the use of checklists which can either be generic in
nature (applicable to any project) or specific to the type of project being analyzed.
- Once risks are identified, they are then subjected to an initial assessment that categorizes the risk
into high/low probability of occurrence and its major/minor impact of the on the project.
- It is preferable to prepare initial responses to each identified risk, especially if risks are identified that
require urgent attention.
- It may be necessary to revisit the identification phase after the assessment phase to see if any
consequential secondary risk can be identified.
ii. Quantitative risk analysis
- Once all the risks have been identified, during the qualitative analysis, it may be appropriate to enter
into a detailed quantitative analysis.
- This will enable the impacts of the risks to be quantified against the three basic project success
criteria: cost, time and performance.
Some of the main techniques used for quantitative risk analysis are:
a. Sensitivity analysis
- Sensitivity analysis helps to determine which risks have the most potential impact on the project.
- It examines the extent to which the uncertainty of each project element affects the objective being
examined when all other certain elements are held at their baseline values,
- One typical display of sensitivity analysis is the tornado diagram.
b. Probabilistic analysis
- Probabilistic analysis specifies a probability distribution for each risk and then considers the effect
of risks in combination.
- The most common form of probabilistic analysis uses sampling technique usually referred to as
Monte Carlo Simulation.

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- In a simulation, the project model is computed many times, with the input values (e.g. cost
estimates or activity durations) chosen at random for each iteration from the probability
distributions of these variables.
- For a cost risk analysis, a simulation uses cost estimates. For a schedule risk analysis, the
schedule network diagram and duration estimates are used.
c. Influence diagram
- Influence diagrams are relatively new technique for risk analysis.
- They provide a powerful means of constructing models of the issues in a project which are
subject to risk.
- As a result influence diagrams are now used as the user interface to a computer based risk
modeling tool thus allowing the development of very complex risk model than can be used to
analyze the cost, time and economic parameters of projects.
d. Decision trees
- Decision trees are another graphical method of structuring models.
- They bring together the information needed to make project decisions and show the present
possible courses of action and all future possible outcomes.
- Each outcome must be given a probability value indicating its likelihood of occurrence.
- This form of risk analysis is often used in the cost risk analysis of projects.
2. Risk Management
- Risk management uses the information collected during the risk analysis phase to make decisions on
how to improve the probability of the project achieving its cost, time and performance objectives
- This is done by reducing the risk where advantageous to do so and monitoring and managing the risk
which remains.
- The manager takes appropriate "risk response" for each risk identified during the risk analysis phase.
This may involve amending the project plans to reduce the risk e.g. moving high risk activities off the
critical path, developing contingency plans or setting up early warning system.
- There can be two types of risk response:
 Immediate response: An alternation to the project plan such that the identified risk is mitigated or
eliminated.
 Contingency response: A provision in the project plan for a course of action that will only be
implemented if the identified risk occurs.
Several risk response strategies are available
i. Avoid
- It involves changing the project management plan to eliminate the threat entirely.
- This may include extending the schedule, changing the strategy, or reducing the scope.
- The most radical avoidance strategy is the shut down the project
- Some risks that arise early in the project can be avoided by clarifying requirements, obtaining
information, improving communication or acquiring expertise.
ii. Transfer
- Risk transfer requires shifting some or all of the negative impact of a threat, along with ownership of
the response, to a third party. E.g. insurance, contracting out services, performance bond, warranties,
etc.
- This process does not in fact eliminate risk

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iii. Risk mitigation
- Taking early action to reduce the probability and/or impact of a risk occurring on the project is often
more effective than trying to repair the damage after the risk has occurred.
- Adopting a less complex processes, conducting more tests, or choosing a more stable supplier are
examples of mitigation actions.
iv. Acceptance
- This strategy indicates that the project team has decided not to change the project management plan
to deal with a risk, or is unable to identify any other suitable response strategy.
- Passive acceptance requires no action except to document the strategy, leaving the project team to
deal with the risks as they occur.
- The most common active acceptance strategy is to establish a contingency reserve, including
amounts of time, money or resources to handle the risks.
Sensitivity Analysis
Sensitivity analysis is a technique for investigating the impact of changes in project variables on the base-
case.
- Typically, only adverse changes are considered in sensitivity analysis.
The purpose of sensitivity analysis is:
 To help identify the key variables which influence the project cost and benefit streams.
 To investigate the consequences of likely adverse changes in these key variables.
 To assess whether project decisions are likely to be affected by such changes
 To identify actions that could mitigate possible adverse effects on the project.
Merger
A merger is a strategy of combining different organizations into a single organization in order to
enhance the financial and operational strengths of both organizations.
Advantages of merger
i. The size and scope of project or service is increased by merging two organizations.
ii. It is possible to achieve the maximum operational efficiency of a concern.
iii. Enlarged size leads to minimization of cost.
Disadvantages of merger
i. It creates monopolistic conditions, which may lead to price inflations (e.g merger of two
hospitals in rural area may increase service cost).
ii. Management of two organizations may not get along because of friction.
iii. Lack of co-operation from the directors and high executives who lose their power and
privileges.

Project Management

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