UNIT 5

PROJECT IMPLEMENTATION,
MONITORING AND
EVLAUATION
 5.1. Organization
• The project organization may take one of the following three
forms;
• Line and staff organization
• Divisional Organization
• Matrix Organization

1.Line and staff organization

• In this form of organization, a person is appointed with the primary responsibility of
coordination of the people in the functional departments;
• Such a person referred to commonly as the project coordinator,
• 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 influence line executives to strive for the fulfillment of project goals.
• 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.
 2. 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.
• The project manager has total formal control
over the division heads.
 3. Matrix Organization:
• The matrix form of 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 are
responsible to their functional superiors; they are
responsible to the project manager as well.
 5.2. 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.
 Functions of Project Planning:
• 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 inspire a sense of time consciousness.
• It establishes the basis for monitoring and
control.
 Areas of Project Planning:

• Planning the Project work: the activities relating to

the project must be spell out in detail, they should
be properly scheduled and sequenced.
• 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.
• Planning the money: the expenditure of money in a
time phased manner must be budgeted.
• Planning the information system: the information
required for monitoring the project must be
performed.
 Project Work -break down structure:
• It 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.
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.
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.
• Characteristics of the project: Most of the projects are large, complex
• People Problem: The lack of experience, training, competence and
inclination to control projects.
• Poor control and information system: Some of the weakness observed
in the control and the information system are;
• Delay in reporting performance
• Inappropriate level of details
• 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:
 An analytical framework based on the following
terms;
a) BCWS: (Budgeted cost for work scheduled) It represents the
total of three components
 budgets for all work packages, scheduled to be completed
 budgets for the portion in process work, scheduled for the accomplished and
 budgets for the overheads for the period.
b) 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
c) ACWP: (Actual Cost of Work Performed). This represents the
actual cost incurred for a accomplishing the work performed
during a particular time period.
d) BCTW: (Budgeted Cost for Total Work). This is simply the total
budget for the entire project work.
e) ACC: (Additional Cost for Completion) this represents the
estimate for the additional cost required for completing project.
 Methods of Analysis cont…

• Given the above terms, the project may be monitored

along the following lines;
• Cost Variance: = BCWP – ACWP
• Schedule variance in cost term:= BCWP-BCWS
• Cost performance Index: = BCWP/ACWP
• Scheduled performance Index: = BCWP/BCWS
• Estimate cost performance Index: =
BCTW/(ACWP+ACC)
 Pre-requisites for successful project implementation:

1. Adequate information: Often project

formulation is defiant because of one or
more of the following shortcomings:
– Shallow 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.
 2. Sound Project Organization
• A sound organization for implementation of
the projects is critical to its success; the
characteristics of such an organization are;
– It is led by a competent leader
– Adequate attention is paid to the human being in
the project
– System and method are clearly defined
– Rewards and penalties to individuals are related to
performance.
 3.Proper implementation Planning:
• Once the investment decision is taken and
formulation and appraisal are being done, it is
necessary to do detailed implementation
planning. It seek to,
– Develop comprehensive time plan.
– Estimate meticulously the resource
requirements
– Define properly inter-linkages between
various activities of the project.
 4. Advance Action:
• Advance action on the following activities may
be initiated
• acquisition of land
• securing essential clearance
• identifying technical collaborators
• arranging infrastructure facilities
• Preliminary design of engineering
• calling of tenders.
5. 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.
6. Better contract 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.
7. Effective monitoring
• In order to keep a tab on the progress of a system
monitoring must be established. This helps in;
– Anticipating deviations form the implementation plan
– Analyzing emerging problems
– Taking corrective action
 Project Monitoring and Evaluation System

• The basis of project monitoring systems is to track actual

progress against planned progress at any given time.
• This covers financial progress (monitoring of actual
expenditure against budgeting expenditure) as well as the
progress of project activities.
Monitoring systems should:
– At all times be concerned with future progress.
– Be simple and cost effective.
– Be able to detect deviations quickly and accurately.
– Be verifiable.
 Monitoring systems in themselves are ineffective unless
they are linked to an effective control system which will
allow the manger to take swift and effective action to
remedy any deviations from the implementation plan.
• Information acquired through monitoring systems can be
divided into three categories:
– Monitoring of physical progress
– Monitoring of financial progress
– Monitoring the quality of project outputs.
1. Monitoring Physical Progress:
• The primary purpose of physical progress monitoring is to ensure
whether project activities are on schedule. This can be achieved
through milestone (target) monitoring and time chart
monitoring.
 When dealing with physical progress of an
activity there are three possible scenarios:
i. Activity outputs can be quantified as a single
number. This is relatively simple to monitor.
ii. Activity outputs can be measured and
valued. This is the case with the construction
of buildings and roads. Progress towards
meeting physical targets should be expressed
as:
 2. Monitoring Financial Progress
• This involves comparing actual expenditure
against the financial plan (budget) produced as
part of the implementation plan.
• The project must therefore have a cost reporting
system in place to enable a comparison of actual
and predicted costs.
• Once the manger has access to accurate cost
data, it is possible to utilize this information in
the process of project cost control by using the
following relationship can do this:
Cost of work to date = Cost of work remaining
Value of work to date Value of work remaining
 3.Monitoring The Quality Of Project Outputs:

• This involves ensuring that outputs are delivered

according to specification.
• This is normally done through a system of direct
inspection and supervision.
• A formal agreement between the implementing
agency and the project owner that project
outputs are satisfactory is known as ‘signing-off’.
• Each project will have its own quality assurance
features in operation and it is important that the
quality control aspect is not overlooked during
project design.
 Project Sustainability

• A project is sustainable if its net benefits

continue throughout the life of the project at a
level sufficient to meet the predetermined
objectives.
• Sustainability is, therefore, the ability of a
project under consideration to continue
operation or provision of services and/or
production without interruptions for the
period under design.
Thanks !!