CHAPTER FIVE

PROJECT IMPLEMENTATION,
MONITORING AND EVLAUATION

PROJECT Management
 Contents
• Organization
• Line and Staff Organization
• Divisional Organization
• Matrix Organization
• Project Planning
• Project Control
• Human Aspects of Project Management
• Pre – requisites for Successful Project
Implementations
• A project implementation phase of a project

provides wide scope for consultancy and

engineering work, first and frame set in the

field of project management.

 Forms of Project Organization
• The traditional form of project organization is not suitable for project
work for the following reasons.
• It has no means of integrating different departments at levels below
the top management, and It does not facilitate effective
communication, coordination and control, when several functional
departments, with different professional backgrounds and
orientations are involved in the project work under time and cost
pressures, which often call for overlap, at least partial, of the
development, design, procurement, construction, and
commissioning work.
• The type of Project organization is determined by the authority that
is given to the persons responsible for the project, the project
organization may take one of the following three forms;
• Line and staff organization
• Divisional Organization
• Matrix Organization
 Line and Staff organization
• In this form of organization, a person is appointed a with the primary responsibility
of coordination the work of the people in the functional departments; such a
person referred to commonly as the project coordinator, acts essentially in a staff
position to facilitate the coordination of line management in functional
departments.
• The project coordinator does not have authority and direct responsibility of the
line management.
• He serves as a focal point for receiving project related information and seeks to
promote the cause of the project by rendering advice, sharing information and
providing assistance.
• He may gently coax line executives to strive for the fulfillment of project goals.
• Deprived to exert leadership and feel unsure of his role. His influence would
depend on his professional competence, closeness to top management, and
persuasive abilities.
• Clearly this is a week form of organization, which may be employed mostly for
small projects. It is certainly not suitable for large projects.
 Divisional Organization
• Under this form of project organization, a separate
division is set up to implement the project, headed by
the Project Manager.
• This division has its complement of personnel over
whom the project manager has full line authority. In
effect, this form of organization implies the creation of
a separate goal oriented decision of the company with
its own functional departments.
• While the project manager still has the problem of
coordinating the inputs of the organizations involved
in the project, he has total formal control over the
division heads.
 Divisional Organization
Advantages: Limitations:
• A very strong form of project • It may entail on inefficient
organization. use of resources of the firm.
• It facilitate the process of
• It may result in an
planning and control
unnecessary duplication of
• It brings better integration of
effects and strengths the specialist in the company.
commitment of project related • It may be difficult to achieve
personal to the objective of the higher degree of
project. specialization.
• It considerably improves the
perfect of fulfilling the time and
budget targets.
 Matrix Organization
• The matrix form of organization, the third form of project organization, seeks to
achieve the twin objectives of efficient use of resources and effective realization
of project objectives, at the cost of greater organizational complexity of course.
• In a matrix organization, the personnel working on the project have a
responsibility to their functional superior as well to the project manager. This
means that the authority is shared between the project manager and the
functional managers.
• The authority and influence of the project manager are across the traditional
vertical line of command while the personnel maintain the departmental
affiliation and are responsible to their functional superiors; they are responsible to
the project manager as well.
• Limitations:
• There is dual subordinations
• Responsibility and authority are not commensurate
• The hierarchical principle is ignored.
 Project Planning
• Project involving few activities, resources,
constraints and inter relationship can be visualized
by the human mind and planned informally.
• However, when a project crosses a certain
threshold level of size and complexity, informal
planning has to be substituted by formal planning,
without effective planning there may be chaos.
 Functions of Project Planning
• Planning, a vital aspect of management serves
several important functions.
– It provides a basis for organizing work on the
project and allocating responsibilities to individuals.
– It is a means of communication and coordination
between all those involved in the project.
– It forces people to look ahead.
– It instills a sense of agency and time consciousness.
– It establishes the basis for monitoring and control.
 Areas of Project Planning
• Comprehensive project planning covers the following;
– a) Planning the Project work: the activities relating to the
project must be spell out in detail, they should be properly
scheduled and sequenced.
– b) Planning the manpower and organization: the manpower
required for the project must be estimated and the
responsibility for carrying out the project work must be
allocated.
– c) Planning the money: the expenditure of money in a time
phased manner must be budgeted.
– d) Planning the information system: the information required
for monitoring the project must be performed.
 Project Work -break down structure:
• The work breakdown structure, as it name suggests,
represents a systematic and logical breakdown of the
project into its component parts. It is constructed by
dividing the project into its major parts, with each of
these being further divided into sub parts. This is
continued till a breakdown is done in terms of
manageable units of work for which responsibility can
be defined, thus the work breakdown structure helps in;
– Effective planning: by dividing the work into manageable
elements, which can be planned, budgeted and controlled.
– Assignment of responsibility for work element to project
personnel and outside agencies.
– Development of control and information system.
 Project Control
• Project control involves a regular comparison of
performance against targets, a search for the
causes of deviation, and a commitment to check
adverse variances.
• It serves two functions.
– (i) Regular monitoring of performance and
– (ii) it motivates project personnel to achieve project
objectives.
 Reasons for ineffective control:
• Effective control is critical for the realization of project
objectives. Yet, control of projects in practice tends to be in
effective. There are three reasons for poor control of projects.
– (i) Characteristics of the project: Most of the projects are large,
complex
– (ii) People Problem: naturally most of the operational mangers, used to
the study rhythm of normal operations and routine work. The lack of
experience, training, competence and inclination to control projects.
– (iii) Poor control and information system: One of the factors, which
inhibit effective control, is the poor quality of control and information
system. Some of the weakness observed in the control and the
information system are;
• a) Delay in reporting performance
• b) Inappropriate level of details
• c) Unreliable information.
 Project Performance Analysis
• Effective control over a project requires
systematic ‘Performance Analysis’.
• For small and simple projects, the project
managers would do performance analysis for
the project as a whole, or for its major
components.
• As the project business larger and more
complex, performance analysis needs to be
done for individual segments of the projects.
 Methods of Analysis:
• Performance analysis seeks to remove this subjectivity be employing
an analytical framework based on the following terms.
– BCWS: (Budgeted cost for work scheduled) It represents the total of three
components (i) budgets for all work packages, scheduled to be completed
(ii) budgets for the portion in process work, scheduled for the accomplished
and (iii) budgets for the overheads for the period.
– BCWP: (Budgeted Cost for Work Performance) this is equal to the sum of
the three components (i) Budgets for work packages actually completed (ii)
budgets applicable to the completed in process work and (iii) overhead
budgets
– ACWP: (Actual Cost of Work Performed). This represents the actual cost
incurred for a accomplishing the work performed during a particular time
period.
– BCTW: (Budgeted Cost for Total Work). This is simply the total budget for the
entire project work.
– ACC: (Additional Cost for Completion) this represents the estimate for the
additional cost required for completing project.
 Human Aspects of Project Management
• A satisfactory human relations system is essential for the
successful execution of a project. Without such a system, the
other systems of project management, however sound they may
be by themselves, are not likely to work well, while technical
problems can often be solved with additional investment of
resources, people’s problems may not be amenable to a
satisfactory solution on the short span of the project life.
• To achieve satisfactory human relations in the project setting,
the project manager must successfully handle problems and
challenges relating to;
 Authority
 Orientation
 Motivation
 Group functioning
 Pre-requisites for successful project
implementation
• Time and cost overruns a project is very common in all places. Due to
such time and cost overruns, projects tend to become uneconomical.
Resources are not available to support other projects and economic
developments is adversely affected.
• What can be done to minimize time and cost overruns and thereby
improve the prospects of the successful completion of projects?
While a lot of things can be done to achieve this goal, the most
important ones appear to be as follows
1. Adequate Information
2. Sound Project Organization
3. Proper Implementation
4. Advance Action
5. Timely Availability of fund
6. Judicious equipment Lending
7. Better contact Management
 Adequate information:
• Often project formulation is defiant because of one or
more of the following shortcomings:
• Superficial field investigation
• Cursory assessment of input requirement
• Slip shot method used for estimating costs and benefits.
• Undue hurry to start
• Deliberate over estimation of benefits and under
estimation of costs.
• Costs may be taken to avoid the above deficiencies so that
the appraisal and formulation of the project is through,
adequate and meaningful.
 Sound Project Organization:
• A sound organization for implementation of the
projects is critical to its success; the characteristics of
such an organization are;
– (i) It is led by a competent leader
– (ii) The authority of the project leads and his team is
commensurate with their responsibility
– (iii) Adequate attention is paid to the human being in the
project
– (iv) System and method are clearly defined
– (v) Rewards and penalties to individuals are related to
performance.
 Proper implementation Planning
• Once the investment decision is taken and often
ever while the formulation and appraisal are being
done, it is necessary to do detailed
implementation, such planning should inter alia,
seek to,
– a) Develop comprehensive time plan.
– b) Estimate meticulously the resource requirements
– c) Define properly inter-linkages between various
activities of the project.
 Advance Action:
• Advance action on the following activities may
be initiated
– (i) acquit ion of land
– (ii) securing essential clearance
– (iii) identifying technical collaborators
– (iv) arranging infrastructure facilities
– (v) Preliminary design of engineering
– (vi) calling of tenders.
• Timely availability of fund: Once a project is approved, adequate
funds must be made available to meet its requirements as per the
plan of implementation it would be high desirable if funds are
provided even before the final approval to initiate advance action.
• Judicious equipment tendering and procurement
• Overdependence on foreign suppliers, even though seemingly
advantageous from the point of view of time and cost, may mean
considerable outflow of foreign exchange and inadequate
incentive for the development of indigenous technology mean
delays and higher uncertainty about the must be sought which
moderates the outflow of foreign exchange and provides
reasonable fillip to the development indigenous technology
 Better contact Management
• Since a substation portion of a project is typically excused though
contracts, the proper management of contracts is critical to the
successful implementation of the project. In this context, the following
should be done.
• The competence and capability of all the contracts must be ensured
• Proper discipline must be inculcated among contracts and suppliers by
insisting that they should develop realistic and detailed resource and time
plans which are congruent with the project plan.
• Penalties which may be graduated must be imposed for failure to meet
contractual obligations
• Help should be extended to contractors and supplier when they have
genuine problems
• Project authorities must retain latitude to off lad contracts to other
parties well in time where delays are anticipated
 What is Monitoring?
• Monitoring is the systematic collection of information
on all aspects of the project while it is being
implemented.
• It can be divided into
 INTERNAL MONITORING (staff performance, planned
expenditure for each activity versus actual expenses,
procurement procedures etc) and
 EXTERNAL MONITORING (planned versus actual activities,
timely implementation of activities, targeted beneficiaries
versus true beneficiaries, unintended effects on the
community and unexpected problems etc).
• Both are important and both need to be monitored.
 Why Do We Do Monitoring?
 We do monitoring to
 analyze the current situation,
 identify problems and find solutions,
 discover trends and patterns,
 keep project activities on schedule,
 measure progress towards objectives,
 formulate/revise future goals and objectives,
 make decisions about human, financial, and material
resources
 provide necessary information for evaluation.
 check how things are going on and compare actual
 Who Does Monitoring?
• Monitoring is concerned both with project staff, implementation
organization and donors. As mentioned above, it is useful for
management and project manager or program coordinator
conducts monitoring on all aspects of the project budget/finance,
materials, staff, activities, outputs/results etc.
• Respected project staff are also responsible for monitoring staff
and tasks under them-for example, finance manager has to
monitor the accountant and cashier as well as budget allocations.
• At the same time, representatives of donors also conduct
monitoring to measure the progress towards objectives and
goal/impact
• When Do We Do Monitoring?
• According to the desired schedule of implementation of the
projects…e.g. monthly, bi-monthly, quarterly
 Effective monitoring
• In order to keep a tab on the progress of a system monitoring must be
established. This helps in
• Anticipating deviations from the implementation plan
• Analyzing emerging problems
• Taking corrective action
• In developing a system of monitoring, the following points must be
keep in mind.
• If Should focus sharply on the critical aspects of the project
implantation
• If must lay more emphasis on physical milestones and not on
financial forgets
• If must be kept relatively simple. If made over complicated, if may
lead to redundant paper work and diversion of resources. Even worse,
monitoring may be viewed as an end in itself rather than as a means
to implement the project successfully.
 Difference Between PERT and CPM
• While there are several features which are common to both CPM and PERT,
there are some major differences. These are:
• CPM uses single-time activity estimates, while PERT uses three-time activity
estimates – optimistic time estimate, pessimistic time estimate and most
likely time estimate.
• In CPM time-cost trade off procedures are used to expedite the project
completion at minimum cost, whereas in PERT they are not used.
• Since single-time activity estimates are used in CPM, the project activity
duration times are deterministic. The use of three-time activity estimates in
PERT allows the application of probability concept to access the degree of
certainty associated with project completion by a certain date.
• CPM, in general, is used in the case of small and medium repetitive
construction projects. On the other hand, PERT is used for managing one-
time large complex projects.
• In practice, project managers combine the features of both CPM and PERT in
managing projects. The project management computer software packages, in
fact, include the features of both CPM and PERT.
 WHAT IS EVALUATION
• Evaluation is a systematic and objective assessment of ongoing or
completed project. It makes comparison of the outcomes of the
project with planned ones.
• Why Do We Do Evaluation?
• The primary objective of evaluation is to ascertain whether the
project has achieved its intended objectives. By drawing
conclusions, evaluation intends to provide recommendations for
the improvement on the future course of the project as well as
lessons learned for other projects.
• Some big organizations use specific criteria when they do
evaluation. Mainly they are;
– 1) Efficiency.
– 2) Effectiveness.
– 3) Impact
• When Do We Evaluate?
• Periodically, mid-term, at the end of the
project (final evaluation) and years after the
completion of the project (ex post evaluation).
• Who Does Evaluation?
• Project manager or assigned project staff can
conduct internal evaluation and donor/s or
consultant/s can conduct external evaluation.
End