36 Project Implementation

Dr. Savita

    1. Learning Outcome

 

After completing this module students will be able to:

  1. Understand the concept of Project Implementation
  2. Understand various approaches of Project Implementation
  3. Know about the stages of Project Implementation
  4. Understand the factors affecting project implementation
  5. Know the suggestions for effective project implementation

    2. Introduction

 

After the selection of a project, the next task of a project manager is to implement it so that a project on paper can be converted into reality. Project implementation can be explained as a process where project inputs are converted into project outputs as set out in the project framework. The process of implementation involves combination of various activities such as planning, scheduling and controlling with the utilization of resources like men, material, machine, technology, money and time which need to be supervised or monitored so that project can be completed within time limits and cost. Project implementation can be explained as that phase of the project where visions and plans are turned into reality. This is the logical conclusion, which is deciding after evaluating the project thoroughly.

 

3. Meaning and concept of Project Implementation: Project implementation refers to the execution of the project i.e. converting the inputs into outputs. It involves a series of activities which need to be planned, operated and controlled for the utilisation of resources. Project implementation is generally done by the implementing agency. Implementing agency is that institution that initially prepared the project and received funding for it. A project implementation unit set up by implementing agency to carry out the implementation of project on behalf of the implementing agency. If any other institution that participate in the implementation of the project by way of working collaborative relationship, extending some technical collaboration, or involving their staff to assist the project are called as co-operating agency.

 

Project implementation has two essential elements i.e. project activation and project operation. Project activation is the foundation stage of project implementation and it involves all activities which make the project operational such as establishing project implementation unit, procurement of raw material and equipments, training and development of manpower, recruitment of project manager and other required staff etc. Project operation is the actual management of a project in practical terms. It is related with the development and normal life period of the project. In this process inputs are transformed into outputs following the activities which are laid down in work plan.

 

4. Approaches to project Implementation:

  • Top-down approach: In this approach project implementation done by the outside agencies with minimum involvement of the beneficiaries. All staff members and workers belong to that agency only. They may include Government departments, international development agencies etc. This approach is very helpful for that projects which require quick results.
  • Bottom-up approach: In this approach project implementation done by the beneficiaries. However the financial resources and technical assistance can be provided by the outside agencies.
  • Collaborative participatory approach: In this approach both top to down and bottom-up approaches to project implementation are applied collectively in the implementation process

    5. Steps/Stages of Project Implementation: It is now clear that project implementation is a process that occurs in noticeable stages and there are common elements of successfully implementation programs. The basic steps/ stages of project implementation from which each project have gone through are:

  1. Project initiation
  2. Project blueprint
  3. Authority and responsibility
  4. Estimating and arrangement of resources
  5. Directing and controlling
  6. Establishment of proper control system
  7. Directing and controlling
  8. Go, live and support
  1. Project initiation: It is a first stage of every project. In this stage initial planning and preparation for project has to be done. The purpose of this stage is providing help in the approval for the project proposal, appointment of staff and project manager, and estimation of budget etc.
  2. Project blueprint: The purpose of this stage is to achieve a common understanding of how the organization intends to run its project within the system. Generally it involves projecting the details of the work and decisions are taken about the tasks to be done and by whom and when they are to be done.
  3. Authority and responsibility: The next step of project implementation is to provide the authority so that responsibility can be assigned. Taking decision as to who is responsible for ensuring that the work gets done, distributing decision making authority among the project team and the existing organizational units and establishing formal lines of communication are some of the key points in this regard.
  4. Estimating and arrangement of resources: This step involves estimation and arrangement of various resources such as manpower, machines, materials, money and time for performing the project activities.
  5. Directing and controlling: This stage involve the activities like motivating the project staff, execution of project activities, and taking corrective measures if there are any difference between set standards and actual performance.
  6. Establishment of proper control system: Establishment of control system involves determining what information is required for the project control, identifying sources of such information and setting up reporting system for the project.
  7. Go, live and support: It is a last stage of the project implementation. It is also called termination of the project. In this stage project manager will hand over the responsibility to the existing staff and prepare the final report. It is a time to move from a project-oriented, pre production environment to live production operation.

    6. Factors affecting project implementation: There are numerous factors which affect the implementation of project. Some factors are responsible for the success of project whereas some are responsible for its failure. Factors that lead to the success of projects include its preparation, design, management and government commitment. Factors that lead to failure of projects include financial constraints, technical constraints, institutional constraints and political constraints. Now we will discuss these factors one by one:

  • Factors that lead to success of projects
  1. Proper planning and preparation: Successful project implementation greatly depends upon its proper and careful planning and preparation. Projects need to be implemented after they have been carefully prepared.
  2. Simplicity of design: Projects that have well defined objectives and which are simple to understand along with appropriate technologies have better chances of being implemented successfully.
  3. Efficient management: The success of implementation of project lies in the hands of efficient managers and as such sound project management is a key to project success. Project performance is greatly influenced by quality of management. A competent manger always looks at difficulties as stepping stones and with his capable qualities turns them into opportunities.
  4. Government commitment: Government and government policies play a crucial role for the success of any project. So for the successful implementation of project government commitment is a pre-requisite. Government commitment is the resuming interest and active support of those agencies as well as individuals to attain the project’s objectives. This can be done through the allocation of financial and human resources or through the working of the administrative and political set-up.
  • Factors that lead to failure of project

There are some factors that may lead to failure of the project. These are:

  1. Financial constraints: Finance plays a major role in the success of projects. So before implementation of project, manager has to assure ample resources for generating the funds. Financial constraints include increasing cost due to increase in prices of raw material and wage level, increasing rate of interest on capital, increase in foreign exchange rates etc.
  2. Technical constraints: Technical constraints include lack of technology, low quality material and machinery, technical defects in installation of machines and other equipments, lack of specialized technical advice or consultants etc.
  3. Institutional constraints: These are the main cause of implementation delays and cost overruns of projects. Institutional or Management constraints include inadequate management information system, interference of bureaucracy in project administration, lack of training and development facilities, high personnel turnovers, incompetent manager etc.
  4. Political/Government constraints: As we all know, for implementation of project, government commitment is a pre-requisite. When government not supports the project or commitment of the government is weak, project implementation almost difficult or impossible.

In addition to these constraints, some other constraints should keep in mind such as delay in allocation of funds for the project, lack of the responsibility and transparency by the project manager, natural calamities, lack of team work etc.

 

7. Problems in project implementation: There are number of problems which are faced by the project manager for implementation of the project. Some of the main problems are discussed as follows:

  1. Undefined project objectives: Generally there are segregation between the personnel responsible for the formulation and personnel responsible for the implementation of projects. Often a person who implement the project are not clear about the project objectives because of lack of identity, they develop low morale resulting into poor management. Thus, there is a great need of the involvement of the persons associated with the implementation of the projects at same stage of the formulation and appraise them of full implications of the project.
  2. More emphasis on technology: Planning team primarily consists of the technical staff. Technical staff emphasis on technical aspect and ignores managerial aspect. So it creates a big problem in project implementation. Further planning team always concentrate to deal with short-term issues, and ignore long-term management issues.
  3. Scarcity of trained and skilled employees: Sometimes people associated with the project simulation have neither the required skill nor the aptitude to formulate the project in consonance with the goals of the project. So it create hurdle in the implementation of projects.
  4. Ineffective monitoring system: Weakness of controlling mechanism is also a problem in the way of project implementation. Often project are not completed within the budgeted resources and scheduled time. It is a normal feature to extend the life of the project resulting in the wastage of huge resources. Proper monitoring helps the managers to project implementation with in stipulated time.
  5. Inadequate supply: It is the duty of the project manager to ensure the availability of required inputs for the production. It is observed that the project get delayed because of the timely availability of all the inputs.
  6. Faulty procedures: Without developing proper procedures, most of the project personnel remains engaged in unnecessary reports. These procedures should be clearly understood in the initial stage of project so that no confusion arises later on.
  7. Faulty manpower planning: The success of the project greatly depends upon the quality and quantity of the personnel associated with it. Lack of proper human resource planning is a major obstacle in the process of project implementation.
  8. Follow-up: Lack of proper follow up of project is also big obstacle in the successful implementation of project.

   8. Suggestions for effective project implementation: The following are the suggestions for effective project implementation:

  1.  Well defined project objectives: There is a great need of the involvement of the persons associated with the implementation of the projects and the persons associated with the formulation of the project for the successful implementation. Proper guidance may be provided to them about the project and project objectives. This will help in developing a good rapport between the formulators and implementers of the projects.
  2. Involvement of management: For the successful implementation of project, management must play active role in project management than only providing money and other resources required for implementation. Further while forming planning team, members of the managerial team also makes a part of the team. Managerial part should not be ignored.
  3. Employ trained and skilled workers: For the successful implementation of project, trained and skilled worker should be employed or before implementing the project it would be better to organize a workshop for providing training to the persons responsible for the project implementation.
  4. Effective monitoring system: Proper monitoring should be done in project implementation. Monitoring if properly designed can help the managers keeping the process of implementation as scheduled. The project performance should be compared at different level of time with the controlled indicators.
  5. Adequate supply of inputs: The project manager should begin the process of procuring the resources immediately after the formulation stage. Because shortage of resources would inflate the cost of project as the other resources would remain idle.
  6. Effective manpower planning and procedures for implementation: Effective manpower planning is a key to success of the project. It is done through proper manpower planning that only needed people are appointed and that they are utilized to increase the overall productivity, efficiency and effectiveness. Further there are set standards of procedures that are to be followed in the project implementation. The procedures are the effective aid to help the efficient functioning of the project.
  7. Follow-up plans: There is a great need to improve the capabilities, perception and attitude of the personnel so that they can take corrective decisions in the ultimate interests of the organization. Controlled management and continued support is necessary for the effective fulfillment of plans.

    9. Evaluation of Projects: According to A.P. Barnabas “To be most effective, evaluation must not be made merely of physical achievements but also of the cost of such achievements”. So careful evaluation is the backbone of all the projects. Evaluation would be futile unless it is carried out in a systematic and coordinated way with clearly defined objectives and consistent procedures applied by the competent valuators. Evaluation can be effective only if there is a well defined format to secure timely, regular and dependable information on the performance of projects. Effective evaluation would help to ensure that proper design procedure and policies carried out and cost saving would be realized by modifying systems through evaluation before, rather than after implementation. Evaluation would also help to ensure compliance with user community objectives before implementation and it would aid in project management and control throughout the life of the project.

 

Thus proper monitoring and controlling of project is compulsory for effective evaluation of project. Monitoring can help managers in keeping the process of implementation as scheduled. The project performance is compared at different intervals of time with the controlled indicators. Whenever deviations are indicated, causes of deviation are examined and solutions are found to correct the deviations. (Rosy Joshi: Project Management)

 

Case Study of Project Implementation in Public Sector

 

The study pertains to implementation of a project for manufacturing ceramic capacitors. To start with, the project was envisaged to be implemented in the joint sector. It entered into a foreign technical collaboration with one of the leading concerns. Later on, due to lukewarm attitude of co-partners, the organization was converted into a wholly owned subsidiary of the state enterprise. The project was formulated well from the angles of financial, commercial, technical, demand and supply consideration. Coming to the implement part, the company relied much on the network techniques and prepared schedules for the various key activities. It placed orders for imported machinery in May 1976 to be received in 8-10 months period. It acquired land on lease basis in October 1976. It also forwarded collaboration agreement for approval of Central Government in the same month. It recruited key staff in January, 1977. During the same period detailed project report and basic engineering work was also finalized. It applied for various licenses during March 1977. In the mean time, financing agencies were approached for the term loan during April to July 1977 and did not experience any difficulty in the process. In the meanwhile, it selected an architect in April with whose consultation. Tenders were floated, civil contractors selected and construction of building work started in May 1977. When the civil works were nearing completion, the company placed orders for balance Indian machinery and also applied to the Central Government for import of raw materials in July-August 1977. It also deputed its personnel in August to the premises of its collaborators for training. According to PERT Chart, installation of machinery was to be completed by March 1978 and the company expected to start commercial production by next month.

 

By the time in July 1978, the project was actually ready for commercial production, that is more or less in conformity with the project schedule. So far as project cost was concerned, it was Rs124 lakhs as against the estimated cost of Rs 167 lakhs. There was a reduction in the project cost because the company preferred to purchase some of the equipment locally which was originally proposed to be imported. The above study, thus amply reveals that at no point of time, the project authorities faced any difficulty in the efficient implementation of the project as per the stipulated cost and time.

(Source: B.B.Goel, Project Management)

 

10. Summary: Project implementation can be explained as a process where project inputs are converted to project outputs as out in the project framework. Project implementation can be explained as that phase of the project where visions and plans are turned into reality. This is the logical conclusion, which is deciding after evaluating the project thoroughly. All projects involve a series of activities such as communicating, training, organization, construction and management. The implementation of project activities converts input to outputs. Outputs are the basic goods and services that the project produces by carrying out the activities. These three levels- inputs, activities and output include resources and actions that a project takes in order to bring about desired change. The interventions that we design in projects are also composed of these three elements. That is to say, interventions are a strategic combination of inputs, activities and outputs. Outcomes, including effects and impact, represent desired changes the project hopes to bring about. Each project is unique and is aimed at achieving a set of different outcomes.

 

The purpose of the implementation is to ensure that the project activities are completed as per schedule and within the budget and there are favorable conditions to maintain the desired changes generated by the project after the project as such is terminated. Project implementation steps are repetitive in nature and each project manager will have to adopt the procedures to his own situation depending upon the nature of the project and the organizational structures. There are numerous factors which affect the implementation of project. Some factors are responsible for the success of project whereas some are responsible for its failure. Factors that lead to the success of projects include its preparation, design, management and government commitment. Factors that lead to failure of projects include financial constraints, technical constraints, institutional constraints and political constraints. At last all the projects undertaken need to be evaluated for the results they have achieved or failed to achieve.

 

Learn More
Suggested Readings:
  1. Projects: Planning, Analysis, Selection, Implementation & Review, Prasanna Chandra, Tata McGraw-Hill Publishing
  2. Project Management: A Managerial Approach, Jack R. Meredith, Wiley Publications
  3. Project Management: A Development Perspective, Goyal B.B., Deep & Deep Publications.
  4. Project Planning and Control, Mohsin M., Vikas Publishing House.
  5. Project Management, Chaudhary, S., Tata Mc Graw Hill Publications.
  6. Project Management, Maylor, Pearson Education
  7. United Nations Industrial Development Organization, Guide to Practical Project Appraisal–Social Benefit Cost Analysis in Developing Countries, Oxford & IBH.
Points to ponder:
  1. Project implementation refers to the execution of the project i.e. converting the inputs into outputs.
  2. Project implementation involves a series of activities which need to be planned, operated and controlled for the utilisation of resources.
  3. Top-down approach: In this approach project implementation done by the outside agencies with minimum involvement of the beneficiaries.
  4. Bottom-up approach: In this approach project implementation done by the ben eficiaries.
  5. Collaborative participatory approach: In this approach both top to down and bottom-up approaches to project implementation are applied collectively in the implementation process.