PROJECT MANAGEMENT DIPLOMA COURSE UNIT TWO PROJECT IDENTIFICATION TUTOR TALK: The Learning Outcomes for this unit are: Describe the two important conditions that must be considered by the project manager. Discuss how you would assess projects feasibility, give the most popular methods and say how you would choose an appropriate project feasibility study method. Explain the identification test. Table 1A: The Project Cycle and Skill Needs Project Management Diploma Course Unit Two Page 1
Introduction Project ideas result from numerous sources, events or needs, notably: Unsatisfied needs and demands, Existing problems or constraints, Poorly used resources, The need to complement other projects or a programme, or Sudden opportunities. Subsequently, it can be seen that a project idea is often dynamic and must be refined into a logical outline or framework in order to define its goals and objectives clearly. This is known as the Project Identification phase of the project cycle. Four consecutive stages make up this phase, namely the: Formulation of a project s objectives, Development of a project outline, Assessment of a project s feasibility, and Passing a project by means of the Identification Test. A description of each stage follows. Formulating a project s objectives The first step in Project Identification is to formulate a potential project s objectives. This is done by identifying the scope and definition of a project. Useful steps are to list its possible size or complexity (the scale of the project) and what it is expected to achieve (the outcome or goal of the project). For example, is the project going to be a long and complicated process involving an entire community to teach specific management skills or is it going to be short and simple involving one or two people such as planting a vegetable garden? These objectives must be clearly laid out so that they reflect, as precisely as possible, the overall mission or goal of the proposed project. Unfortunately, to formulate and define a project s objectives is not as easy as it seems at first. Care must be taken to clarify a project s purpose in order to avoid confusion at a latter stage of the project s development. Project Management Diploma Course Unit Two Page 2
Two important conditions a project manager must consider when formulating a project s objectives are: Clarity: A project manager should make sure that objectives are as simple and clear as possible, and Consensus: A project manager should consult with everybody who may have a vested interest in the proposed project to ensure that consensus is reached about the intended purpose and strategy. Failure to find a suitable agreement about a project proposal signals the need for careful deliberation and revision of these objectives before a project can move into the outline stage. The formulation of objectives must also be seen as a dual process; on the one hand, the variety of ideas become narrowed down into specific objectives with an end goal and, on the other hand, these objectives become detailed as the formulation process continues. Once a project s objectives are established, the project outline which refines such objectives and clarifies the project s purpose, follows. Developing a project outline A project outline is simply a general guide of factors to consider once a project s objectives have been formulated. This framework guides a project manager through an initial layout or idea of the project plan but does not involve a detailed analysis of the proposal (this detail follows in the next phase of the project cycle: Project Planning which is described in Unit 3). A project outline can be drawn up by the following five steps: 1. Define the problem, issue or challenge The first step is to clearly establish an understanding of what the project is about. Consideration can be given to reviewing past project experiences of a similar nature and suchlike methods to clarify the exact nature of the need, challenge or opportunity for which the project is being developed (this is discussed in more detail in assessing a project s feasibility later on). Examples of useful questions to ask are: Is the project about making a profit? Is the project about fulfilling a physical need? Is the project about a social vision? Project Management Diploma Course Unit Two Page 3
2. Determine a definition The second step is to formulate a rough preliminary project definition on which future planning will be based. The definition or description of what a project is about may be refined in the next phase of the project cycle (Project Planning) or simply changed as new information comes to light. However, generally-speaking, this definition should be as consistent as possible throughout the project cycle once this phase is complete. Examples of useful questions to ask include: Will the project be about a physical activity? Will the project be about a mental activity? Who will the project target? 3. Get an idea of the project s lifespan The third step is to get a general idea of how long the project will be or when a project can be expected to end. This is a rough estimation only and provides the project manager with an idea of possible start and end dates. Examples of useful questions to ask include: Will the project be short term (less than one year)? Will the project be medium term (2 to 5 years)? Will the project be long term (over 5 years)? 4. List the necessary and not-so-necessary needs The fourth step is to identify the potential needs, notably people, money and materials, that may be required for the project. Once more this should only be a rough idea to inform the project manager about the immediacy or availability of important supplies and resources. Examples of useful questions to ask are: Who is currently available to assist in the project? Is there money available at this point hi time? Are supplies or material goods available at this point in time? Project Management Diploma Course Unit Two Page 4
5. Note possible alternatives The fifth step is to list any provisional alternatives a project manager should consider when planning for the project. Although not a vital step, highlighting other opportunities or approaches at this stage can help in drawing up a rough sketch of expectations. This step also warns a project manager about some possible risks. Examples of useful questions to ask include: Who could I contact if the people I thought of are unavailable? Where else could I obtain funding from? What if the project purpose is unnecessary? Once an outline is established then a feasibility study must follow to assess a project s viability or chances for success. A feasibility study forms the core part of the Project Identification phase and informs a project manager whether a project s objectives are practical or not. Assessing a project s feasibility A feasibility study informs project management about whether the objectives formulated can be achieved or if alternative goals need to be seriously considered. The main feasibility tool is known as a cost-benefit analysis. This tool or process compares the potential costs of the project (such as money and time spent) with the potential benefits of the project (such as benefits accrued to the community or person, or profit made). For example if the potential financial cost to build a house is 100,000 and it s estimated sales cost is 95,000 then a project can be considered unfeasible if the goal is to make a profit. A feasibility study also helps to identify the best possible approach rather than identify the first approach which is considered good enough. In other words, a feasibility study should continue until all possible alternatives listed in the project outline have been assessed and not until the first viable approach is identified. The scope and duration of a feasibility study depends on the complexity of the project itself. A number of methods can be used to undertake a project feasibility study, the most popular of which are: Extrapolation, Pilot tests, and Simulation. Project Management Diploma Course Unit Two Page 5
Extrapolation By extrapolation a project manager assesses the past or present trends of similar projects. In particular, the factors which contributed to such similar projects successes and failures are noted. For example, the feasibility of a proposed project to build a house could be assessed by the use of extrapolation by comparing the processes applied and problems encountered during a similar housing project in the past. Useful questions to ask include: How did they go about it? What unexpected problems did they encounter? How did they cope with these unexpected challenges? What factors contributed to their success? Pilot test A pilot test is a small scale launch of a proposed project. For example, a pilot test could involve sending out a sample of a new product or building the show unit of a new house. Sampling the test product or constructing a show unit informs a project manager of possible problems which may be encountered during project implementation and indicates whether the existing goal or objectives are feasible. Simulation Simulation exercises examine the potential of a project as it develops without having to commit material or human resources. For example, computer simulations can display the load-bearing potential of a bridge or show how a specific construction such as a planned house would eventually look after its completion. Choosing an appropriate project feasibility study method usually depends on the nature, scale, cost and objectives of the project. However, all three methods can be used at the same time as they are not mutually exclusive. For example, when undertaking a feasibility study of a potential mass housing project, a review of past experiences elsewhere in similar projects (extrapolation), building a show unit (pilot test) and applying a computer model of the house in question (simulation) of the entire proposed housing project can all be useful to a project manager. Project Management Diploma Course Unit Two Page 6
By these methods a project can be declared unfeasible if the proposed project s objectives are not realistic or too risky. Specific factors which could lead to a project being declared unfeasible include: Inappropriate technology or means to achieve the project goal, Excessive risk in undertaking a project of that nature, Poor or inadequate resources, Lack of individual or organisational capacity, and a Lack of interest or commitment to the project idea. If it is concluded that a project is unfeasible in its present format then a project manager must decide whether to discard the project altogether or review and reformulate its proposed objectives once more. On the other hand, if a feasibility study shows that a proposed project is feasible, then the Identification Test must follow. The Identification Test The Identification Test is a layout of issues a project manager must consider before planning is started. This Test involves a summary of the findings of each stage completed up to this point, namely: Establishment of a main project goal, Evidence of resource support (people, money and materials), and Confirmation of positive prospects for attaining the goal. The main objective of an Identification Test is to assess the risks involved in undertaking a project. This depends on the proposed nature of the project and its likely complications. For example, a community-based project can fail the Identification Test if it is found that the number of parties which need to be consulted expands phenomenally or demand more time while the proposed start and end dates of a project cannot be guaranteed. This does not mean that the project is unfeasible but rather that detailed planning and implementation should not be started until the necessary negotiations or consultation between the parties is completed. On the other hand, a project can pass the Identification Test once these demands are met and any other possible complications are not foreseen. Project Management Diploma Course Unit Two Page 7
TUTOR TALK: The Project Identification phase is the first phase of the project cycle. The Project Identification phase identifies and outlines a project idea. Critical measures which need to be completed during the Project Identification phase involve assessing the feasibility or risk of a proposed project. Failing either step usually means that the project goal or objectives might have to be reconsidered at a later stage, adjusted or disregarded altogether. If a project is considered feasible and passes the Identification Test then a commitment can be made in terms of money, time and resources and the project moves successfully into the second phase of the project cycle Project Planning. ACTION CHART: SIX STEPS TO BETTER PROJECT IDENTIFICATION Analyse, brainstorm, think Write the project definition Set a completion date List potential needs List alternative steps Choose a course of action TUTOR TALK: Keep up all your good effort. Now move on and complete your question paper relating to this unit. Copyright Reserved We all need a feeling that we are achievers, that we are purposeful, that we are doers. As you search for goals meaningful goals, self-directed goals - you simultaneously build the confident-self. Move towards your goals, and achieve your goals, and you will feel the full sense of self that you want. Unknown Project Management Diploma Course Unit Two Page 8